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CVC edges closer to telecom tower company acquisition

2 December 2020

CVC Capital Partners is nearing a $700m deal to acquire Myanmar-based telecom tower company Irrawaddy Green Towers (IGT), according to a Bloomberg article on 25 November.

The news site states an agreement could be reached as soon as next week and CVC is talking to bankers to secure financing for the deal, citing anonymous sources.

However, Bloomberg’s sources also said deliberations are ongoing and the parties could decide not to proceed with a transaction.

If successful, the deal would be Myanmar’s second-biggest on record. The largest was the combined $742m investment in a duo transaction by a unit of Thai Beverage PCL to acquire a 75% stake in the Myanmar Distillery group and a related business, Myanmar Supply Chain and Services Co, in 2017.

The potential IGT transaction would add to the $779.1bn worth of pending and completed mergers and acquisitions in Asia Pacific so far this year, which is nearly 18% higher than the same period in 2019, according to Bloomberg.

We note that Bloomberg reported in May that Chinese wireless infrastructure company Guodong Group and Malaysia’s largest wireless operator Axiata Group’s unit edotco Group were among the shortlisted bidders for IGT. 

The Malaysian company first entered Myanmar through the acquisition of a 75% stake in Digicel Myanmar Tower Company Ltd in December 2015

IGT, set up in 2014, serves major operators in Myanmar including Norway's Telenor ASA and Qatar's Ooredoo Group, according to its website.

The Myanmar firm is owned by Singapore-based Irrawaddy Tower Asset Holding, which is backed by Alcazar Capital in Dubai and Lebanon-based investment firm M1 Group, according to the website of Dutch development bank FMO, which counts Irrawaddy as a client.

CVC Capital Partners, a global private equity firm, was established in 1981 and has presence in America, Europe and Asia.

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