Edotco Group, a subsidiary of Axiata Group Bhd, will put on hold its plans to acquire telecommunications infrastructure from Robi Axiata Ltd – amid regulatory concerns in Bangladesh.
In response to The Rakyat Post queries, the company said it will wait until Bangladesh Telecommunications Regulatory Commission (BTRC) makes it clear what the hiccup is.
“Edotco Group will wait until the guideline is ready and will continue to work closely with regulators.”
Bangladesh newspaper The Daily Star reported that BTRC had refused Robi’s proposal to transfer 80% of its network access to the company, which is also Robi’s major shareholder.
As a result, investments of more than US$120 million (RM380.3 million) into Robi have become uncertain.
The network infrastructure or non-telecom equipment is passive infrastructure that includes towers, building, batteries and powers and cooling systems.
The paper reported that Robi formed Edotco Bangladesh Co Ltd two years ago as its subsidiary and sought approval in February this year to transfer 80% of Edotco’s equity shares to Edotco Group.
In reviewing the proposal, the paper reported that the Bangladesh regulator is concerned Robi would lose control over infrastructure network if transferred to the Malaysian company.