Last Thursday, Qatar’s Ooredoo revealed that it has agreed to sell Nine Communications Pte. Ltd, a Singapore-based business, its Myanmar operation.
Qatari telecommunications giant Ooredoo is contemplating the sale of its tower network, three people with knowledge of the situation told Reuters.
Ooredoo is looking to sell the telecom towers that are part of its network both inside Qatar and in the other regions where it operates, the sources added, though the report confirmed talks are still in progress.
Ooredoo declined to comment on the situation.
Telecom tower sales
As telecom corporations look to cut costs and debt, telecom towers have been the focus of numerous significant takeovers in recent years.
Deutsche Telekom began selling its tower business in March in a deal that might fetch up to 18 billion euros, according to sources cited by Reuters.
The company that controls 49.5% of Vodafone New Zealand, Infratil Ltd, said in July that Vodafone New Zealand was also selling its tower assets for $1.7 billion.
In an effort to cut back on expensive infrastructure expenditures and concentrate on information and communications technology, carriers in the Gulf area have also started selling tower assets that are part of their network to strategic investors.
Sale of Myanmar unit
Last Thursday, Qatar’s Ooredoo revealed that it has agreed to sell Nine Communications Pte. Ltd, Myanmar operation, to a Singapore-based business.
The transaction, which has an enterprise value of $576 million and is expected to receive a total equity consideration of $162 million, is still subject to the customary closing conditions, including Myanmar’s regulatory clearances.
Ooredoo will sell all of its interest in Ooredoo Asian Investments Pte Ltd., the parent company that fully controls both Ooredoo Myanmar Ltd. and Ooredoo Myanmar Fintech Ltd., according to a regulatory statement published by the Doha-based company on the Qatar Stock Exchange, where its shares are traded.
According to Ooredoo Group CEO and Managing Director Aziz Aluthman Fakhroo, the disposal was the result of a review meant to restructure the company’s portfolio.
Ooredoo is the last majority foreign-owned telecom operator that has been functioning in Myanmar as of last week since it was necessary to leave following the military coup of 2021.
Norway’s Telenor made a difficult exit from the country in March.