Axiata, Telenor merge operations in Malaysia

Malaysian telecom company Axiata Group and Norway’s Telenor are planning to merge their operations in the Southeast Asian country, according to releases by both companies on April 8.

Plans are to merge Celcom Axiata and Digi.com into a new entity in which the firms would each own about 33.1%. Local ownership would exceed 51% with Malaysian institutional investors owning at least 17.9% of shares in Celcom Digi, Axiata said.

“It is no secret that the telecommunications industry continues to face long-term structural headwinds of slower growth, increased operating costs and lower profits,” Axiata’s CEO Izzaddin Idris said in a statement.

He added that as a commercially stronger and more resilient entity, Celcom Digi, the merged company, would help “restore long-term growth and capacity to the industry, especially in terms of improved profitability”.

The planned merger comes as the Malaysian government’s move to build and manage a 5G network on its own instead of relying on private carriers has spurred expectations of a consolidation in the industry.

New mobile phone giant with 19 million customers

The merged entity will have a total of 19 million cellphone customers and a combined revenue of 12.4 billion ringgit (around $3 billion). The new company will remain listed on Bursa Malaysia, according to the statement. It will compete with Malaysia’s current mobile phone network market leader Maxis which has about 9.4 million subscribers.

Axiata and Telenor said they will seek to finalise the agreement on the proposed transaction in the second quarter following due diligence.



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Malaysian telecom company Axiata Group and Norway’s Telenor are planning to merge their operations in the Southeast Asian country, according to releases by both companies on April 8. Plans are to merge Celcom Axiata and Digi.com into a new entity in which the firms would each own about 33.1%. Local ownership would exceed 51% with Malaysian institutional investors owning at least 17.9% of shares in Celcom Digi, Axiata said. “It is no secret that the telecommunications industry continues to face long-term structural headwinds of slower growth, increased operating costs and lower profits,” Axiata’s CEO Izzaddin Idris said in a statement....

Malaysian telecom company Axiata Group and Norway’s Telenor are planning to merge their operations in the Southeast Asian country, according to releases by both companies on April 8.

Plans are to merge Celcom Axiata and Digi.com into a new entity in which the firms would each own about 33.1%. Local ownership would exceed 51% with Malaysian institutional investors owning at least 17.9% of shares in Celcom Digi, Axiata said.

“It is no secret that the telecommunications industry continues to face long-term structural headwinds of slower growth, increased operating costs and lower profits,” Axiata’s CEO Izzaddin Idris said in a statement.

He added that as a commercially stronger and more resilient entity, Celcom Digi, the merged company, would help “restore long-term growth and capacity to the industry, especially in terms of improved profitability”.

The planned merger comes as the Malaysian government’s move to build and manage a 5G network on its own instead of relying on private carriers has spurred expectations of a consolidation in the industry.

New mobile phone giant with 19 million customers

The merged entity will have a total of 19 million cellphone customers and a combined revenue of 12.4 billion ringgit (around $3 billion). The new company will remain listed on Bursa Malaysia, according to the statement. It will compete with Malaysia’s current mobile phone network market leader Maxis which has about 9.4 million subscribers.

Axiata and Telenor said they will seek to finalise the agreement on the proposed transaction in the second quarter following due diligence.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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