The deal is said to be in line with the Qatari telecom company’s strategic decisions to focus on markets where it has a leading position
Ooredoo is a Qatar-based telecommunications group. (Credit: Wildtunis/Wikimedia Commons)
Ooredoo, a Qatar-based telecommunications company, has agreed to divest its telecom business in Myanmar to Singapore-based Nine Communications for $576m.
The transaction will see the Qatari group sell 100% of Ooredoo Asian Investments. The latter is the parent company of Ooredoo Myanmar and Ooredoo Myanmar Fintech, which represent Ooredoo’s business in the Southeast Asian country.
Nine Communications is a special purpose vehicle (SPV) owned by the Link Family Office and telecom veteran U Nyan Win.
Founded in 2014 and based in Yangon, Ooredoo Myanmar is a telecom operator that serves residential and commercial customers in the country with mobile telecommunications and internet services.
Ooredoo Group CEO and managing director Aziz Fakhroo said: “Ooredoo Group has gone through an extensive business review resulting in a reassessment of its overall strategic direction.
“The difficult decision to divest from our Myanmar business is a direct result of this review to reshape our portfolio as a leading telecommunications company. It was important for us to make this call at a time when Ooredoo Myanmar is performing at its strongest to ensure the business continues from strength to strength.
“We will ensure a smooth transition with the least possible disruption adhering to all local requirements”.
Ooredoo roped in EY Corporate Finance as exclusive financial adviser on the deal, while CMS was its legal adviser.
The closing of the deal is subject to regulatory approvals in Myanmar and other customary conditions.
Earlier this year, Ooredoo signed a five-year partnership agreement with Ericsson to deliver offshore enterprise connectivity in Qatar with an aim to modernise the oil and gas enterprise network.