Norwegian telecom company Telenor ASA (TELNY.PK,TELN) Thursday said it is in advanced discussions with Axiata Group Berhad regarding a potential merger of their Malaysian mobile operations Digi and Celcom.
The parties will have an equal ownership of 33.1 percent each in the combined company, which will be named Celcom Digi Berhad.
The companies acknowledge that there is no certainty that these discussions will result in any agreement. Telenor Group and Axiata expect to finalize agreements in relation to the proposed deal within the second quarter of 2021 following due diligence.
As part of the deal, Axiata will receive newly issued shares in Digi which represents 33.1% of the merged company.
Celcom Digi will continue to be listed on Bursa Malaysia and will be amongst the top stocks in terms of market capitalisation.
The transaction will be subject to approval by Digi Board and Celcom shareholder, receipt of regulatory approvals and other customary terms and conditions.
Both parties have agreed to nominate Dato’ Izzaddin Idris as Chair, Jørgen Arentz Rostrup as Deputy Chair, Idham Nawawi as CEO and Albern Murty as deputy CEO of the merged company.
Arentz Rostrup, Executive Vice President and Head of Telenor Asia, said, “The proposed merger represents an important milestone in Telenor Group’s strategy to strengthen its Asian presence and create value in the region. The new entity will have size and financial capabilities to support Malaysia’s digital aspirations and lead industry development in a connected society.”
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