Singapore Myanmar Investco said on Friday that its indirect subsidiary TPR Myanmar entered a deal to sell all of its telecommunications towers and tower leases in Myanmar to Irawaddy Green Towers for around US$8 million, marking a loss.
The audited net book value of the sale assets was US$13.50 million as of end-March 2018, with the US$5.58 million deficit against the sale proceeds to result in a loss, the company said in a filing to SGX before the market open on Friday.
The company pointed to the capital-intensive nature of building, operating and leasing telecommunications infrastructure as its reason for selling the towers.
“The telecommunications infrastructure market is undergoing rapid consolidation leaving limited opportunities for smaller players. TPR with its small market share is likely to underperform versus its larger competitors,” Singapore Myanmar said.
“In light of the company’s expansion into other businesses in Myanmar, the proposed disposal will allow the company to focus its efforts on less capital intensive and potentially better performing business segments for faster returns on investments, such as its duty-free and retail business,” it added.
The company said it has earmarked the net proceeds of US$7.93 million for working capital, servicing bank loans and other operating requirements.
Singapore Myanmar’s 97 percent-owned subsidiary, Myanmar Infrastructure Group, owns 99.99 percent of TPR Myanmar, the filing said.
Irawaddy Green Towers is the largest independent tower company in Myanmar, with more than 3,000 telecommunications towers, and together with its share holders and parent, Irrawaddy Towers Asset Holding, have rolled out more than 100,000 telecom towers across Asia, the Middle East, Africa and the Americas, the filing said.