Jazz is gearing up to sell its tower business in a massive deal that amounts to approximately $940 million in worth. Dawood Hercules Corporation Limited (DHCL), in partnership with edotco, signed a partnership agreement with Veon Pakistan Limited – parent group of Jazz, in a bid to acquire its tower business in Pakistan.
edotco Group S, owned by Axiata – Malaysia’s biggest mobile operator, together with Dawood Hercules Corporation Limited, has acquired almost 13,000 towers from Jazz. edotco, through Tanzanite Tower Private Limited, entered into an agreement with Jazz to acquire its tower business. As per the agreement, DH Corporation will be investing a 45% equity stake, while the remaining 55% controlling stake will be held by edotco.
Aamir Ibrahim, CEO of Jazz said that “this transaction with Tanzanite Tower will allow Jazz to further improve its core strength in providing best in class products and services to its customers. Partnering with a trusted partner like Tanzanite Tower will ensure that Jazz’ customers will continue to benefit from industry leading network quality. It also allows Jazz to focus on its journey to becoming an innovative digital lifestyle partner.”
On this occasion Suresh Sidhu, CEO of edotco said, “edotco is delighted to expand its business in Pakistan by catering to the network requirements of Jazz, the country’s number one digital communications company. With Dawood Hercules as our partner, we are confident in the potential of the market in Pakistan and will continue to demonstrate our long-term commitment to supporting the development and enhancement of the country’s telecommunications infrastructure.”
CEO of Dawood Hercules Corp, Inam ur Rahman, said that “DH Corp has always invested in projects and businesses that directly contribute to Pakistan’s growth and prosperity. Continuing our commitment to the future, we are excited to partner with edotco Group Malaysia and bring their wealth of knowledge to the local telecommunications sector. We are confident this enterprise will serve as a beacon for more investment in Pakistan and in our people.”
For those who are not familiar with the aforementioned firms, Dawood Hercules is an investment holding company listed in Pakistan Stock Exchange (PSX) with a total market capitalization of USD $600 million. Veon, on the other hand, is the majority shareholder in Jazz.