edotco Group Sdn Bhd, its Malaysian parent Axiata Group Berhad (KLSE:AXIATA) and a Japanese backer are in talks with investors for stake sales, in a deal that could raise about $1.2 billion, four sources familiar with the matter said. The move comes as global infrastructure funds are pouring huge sums of money to acquire capital-intensive telecom infrastructure assets in Southeast Asia, seeing strong growth opportunities. The sources said discussions are taking place for a minority stake to be sold in the decade-old Edotco, which is 63% owned by Axiata.

However, three of the sources said there was a possibility that Axiata could consider giving majority control in order to secure a deal. The sources declined to be identified as they were not authorized to speak to the media. Axiata and Edotco declined to comment.

Two of the sources said cash-rich infrastructure funds such as Stonepeak Partners LP and Global Infrastructure Management, LLC, and a group led by Japanese trading firm Mitsui & Co. Ltd. (TSE:8031), are among potential buyers for the stake sales. Global Infrastructure Partners declined to comment.

There was no response from Mitsui and Stonepeak to Reuters queries. Reuters is first to report on the identity of the potential buyers in the total stake sales worth about $1.2 billion and also the possibility of Axiata ceding majority control of Edotco. The sources said the bulk of the proceeds from the share sales will likely fund Edotco's business expansion.