Axiata Group Berhad (“Axiata” or “the Group”) has entered into a Memorandum of Understanding (“MoU”) with Touch Group Holdings Sdn Bhd to jointly explore opportunities in strengthening the country’s telecommunications infrastructure landscape in line with the growing demand for digitalisation.
The MoU explores potential avenues for collaboration within the information and communications technology (“ICT”) infrastructure industry in Malaysia. Both companies are keen to leverage on each other’s strengths to improve national connectivity and modernise ICT infrastructure that will be critical in sustaining ecosystems necessary for the nation’s pivot towards becoming a digital economy.
The MoU was signed on the back of a tower acquisition deal between Axiata’s infrastructure business, edotco Group Sdn Bhd and Touch Group which will see edotco acquiring 100% of the latter’s subsidiary company, Touch Mindscape Sdn Bhd for a total purchase consideration of RM1.7 billion and approximately 1000 additional tenanted towers. It is the intention of the parties for the MoU to be in force for a one-year period.
As one of the leading digital companies in Malaysia, Axiata is deeply committed in its responsibility to accelerate digital growth in the country. With the current digitally accelerated environment, there is room for improvement across various aspects including how the Group can ramp-up on connectivity infrastructure to facilitate better education and healthcare, greater workforce productivity, and empower rural communities for growth, among others. This MoU paves the way for Axiata to collaborate with a partner on the back of a good track record of building its infrastructure business, in order to jointly identify growth levers in responding to the national call to build a more equitable and digitally inclusive future for Malaysia.
As one of the leading telecommunications groups in Asia in pursuit of its vision to be The Next Generation Digital Champion by 2024, Axiata has transformed itself from a holding entity with a portfolio of pure-play mobile assets into a Triple Core Strategy driven business focusing on Digital Telco, Digital Businesses and Infrastructure.
Within ASEAN and South Asia, the Group has controlling stakes in market-leading mobile and fixed operators in the region including ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia and ‘Ncell’ in Nepal. Axiata is actively spearheading efforts to transform its mobile-centric operations into digital converged companies.