Datuk Izzaddin Idris, President and Group CEO of Axiata Group (left) and Jorgen C. Arentz Rostrup, Exec. Vice President and Head of Telenor Asia (right) hold a press conference Thursday to brief the media on their talks. - CHAN TAK KONG/The Star
KUALA LUMPUR: The once-failed merger talks between Axiata Group Bhd and Norway’s Telenor ASA is back and the sweetener in the deal this time to make it more palatable is an equal shareholding of 33% by both parties.
This is a far cry from the 51:49 ratio that had been proposed in the last merger of equals in May 2019 with Telenor taking the lead to create a regional giant. However, too many hurdles saw that merger falling through.
Telenor, Axiata in talks to merge Malaysian operations Star Business Desk Star Business Desk
Telenor Group and Axiata Group Berhad are in advanced discussions about a potential merger of their Malaysian mobile operations Digi and Celcom, Telenor said yesterday.
The merged company will be named Celcom Digi Berhad, the Norwegian company said in a press release. Telenor and Axiata will work towards finalising agreements in relation to the proposed transaction within the second quarter of 2021 following due diligence, it added.
Both parties will have an equal ownership of 33.1 per cent each in the new company, which is expected to be a leading provider of telecommunication services in the Southeast Asian country, with competence and scale to meet increasing expectations and demand from a digitally connected society.
Norwegian
(8 April 2021) Telenor Group and Axiata Group Berhad (“Axiata”) are in advanced discussions regarding a potential merger of its Malaysian mobile operations Digi and Celcom, in which the parties will have an equal ownership of 33.1 percent each. The new company will be a leading provider of telecommunication services in the country, with competence and scale to meet increasing expectations and demand from a digitally connected society.
The parties aim to create a leading telecommunication service provider in Malaysia with the capabilities to drive research and innovation and facilitate a platform for accelerated digital growth in the local ecosystem. A progressive digital economy is important to Malaysia’s future economic resilience and competitiveness, and the merged company will be well positioned for delivering industry innovation, high-quality connectivity and a diversified value proposition to the customers.
Published on: Friday, April 09, 2021
By: Bernama
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Kuala Lumpur: Axiata Group Bhd and Telenor Asia, the major shareholder of Digi.com Bhd, are proposing to merge Celcom Axiata Bhd and Digi to become a company, known as Celcom Digi Bhd (MergeCo).
Axiata, together with Malaysian institutional funds, will own over 51 per cent in the company.
In a statement today, Axiata said as part of the merger transaction, the company would receive newly issued shares in Digi, representing 33.1 per cent post-transaction shareholding and cash equalisation amount of around RM2 billion, of which RM1.7 billion would come from Digi as new debt while the balance of RM300 million will come from Telenor.
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