Axiata, Telenor agree on their $12-billion merger in Malaysia
Malaysia’s telecommunications conglomerate Axiata and Norway’s Telenor agreed on the conditions of their tie-up to merge their Malaysian operations Celcom and Digi to a new entity valued at 50 billion ringgit ($12.06 billion), with completion of the deal expected for the second quarter of 2022.
The plans for the merger have been announced in April this year.
Each of the companies will take a stake of 33.1 per cent in the merged company called MergeCo, which will be listed on the Malaysian stock exchange within the regulatory structure of what was before Digi and operate under the brand Celcom Digi.
In detail, Axiata will transfer its stake in Celcom Axiata to Digi for 17.8 billion ringgit, according to a filing on June 21. In return, it will get new shares and 1.7 billion ringgit in cash from Digi and close to 300 million ringgit from Telenor.
The transaction is subject to approval of Axiata and Digi shareholders, regulatory approvals and other customary terms and conditions.
Combined subscriber base of 19 million
Telenor and Axiata expect the merger to a company with a combined subscriber base of about 19 million would establish a “commercially stronger and more resilient digital converged service provider” and also would unleash synergies and potential cost savings.
Celcom Digi also plans to invest 250 million ringgit over five years to build a new innovation center in Kuala Lumpur.
The move comes as Telenor, in particular, is facing cost savings pressure in Southeast Asia after in early May the company admitted it is forced to write-off its entire investment of $782 million in its mobile network operations Myanmar after the February 1 coup d’etat has plunged the country into chaos.
Malaysia’s telecommunications conglomerate Axiata and Norway’s Telenor agreed on the conditions of their tie-up to merge their Malaysian operations Celcom and Digi to a new entity valued at 50 billion ringgit ($12.06 billion), with completion of the deal expected for the second quarter of 2022. The plans for the merger have been announced in April this year. Each of the companies will take a stake of 33.1 per cent in the merged company called MergeCo, which will be listed on the Malaysian stock exchange within the regulatory structure of what was before Digi and operate under the brand Celcom Digi....
Malaysia’s telecommunications conglomerate Axiata and Norway’s Telenor agreed on the conditions of their tie-up to merge their Malaysian operations Celcom and Digi to a new entity valued at 50 billion ringgit ($12.06 billion), with completion of the deal expected for the second quarter of 2022.
The plans for the merger have been announced in April this year.
Each of the companies will take a stake of 33.1 per cent in the merged company called MergeCo, which will be listed on the Malaysian stock exchange within the regulatory structure of what was before Digi and operate under the brand Celcom Digi.
In detail, Axiata will transfer its stake in Celcom Axiata to Digi for 17.8 billion ringgit, according to a filing on June 21. In return, it will get new shares and 1.7 billion ringgit in cash from Digi and close to 300 million ringgit from Telenor.
The transaction is subject to approval of Axiata and Digi shareholders, regulatory approvals and other customary terms and conditions.
Combined subscriber base of 19 million
Telenor and Axiata expect the merger to a company with a combined subscriber base of about 19 million would establish a “commercially stronger and more resilient digital converged service provider” and also would unleash synergies and potential cost savings.
Celcom Digi also plans to invest 250 million ringgit over five years to build a new innovation center in Kuala Lumpur.
The move comes as Telenor, in particular, is facing cost savings pressure in Southeast Asia after in early May the company admitted it is forced to write-off its entire investment of $782 million in its mobile network operations Myanmar after the February 1 coup d’etat has plunged the country into chaos.
