Analysts had said Axiata would have to accept the offer unless it was able to find a partner to fund a counterbid since M1 was a non-core asset. The 28.67% stake comprises 265.41 million shares.
KUALA LUMPUR: The proposed merger of Axiata Group Bhd
and Telenor ASA's Asian operations in Asean and South Asia will create a global champion with proforma revenue of more than RM50bil.
Axiata said in a statement on Monday the new merged entity's (MergedCo) earnings before interest, taxes, depreciation & amortisation (Ebitda) would be more than RM20bil. Telenor Group has a 49% stake in Digi.com.
The MergedCo will have a controlled operating subsidiaries in nine countries with a combined total population of more than one billion people and 300 million customers.
“With its unique portfolio, the MergedCo will be one of the largest telecommunications groups in the region in terms of value, revenue and profit, and with a strengthened balance sheet to support aggressive growth and expansion in the consumer, home, enterprise and IoT/artificial intelligence (AI) market segments,” Axiata said.
Additionally, the portfolio of controlled telecommunication operations shall comprise six countries with number one positions, two countries with number two positions and one market with third position within their respective markets.
Separately, Robi Axiata Ltd, a subsidiary of Axiata operating in Bangladesh shall continue to be managed independently by Axiata post completion of this proposed transaction.
Axiata said in bringing together assets from both parties, the proposed transaction has the potential to deliver up to around RM20bil incremental value in synergies through consolidation of assets and organisations, economies of scale and scope, and complementary best practices of the parties.
“The proposed transaction aims to enable the MergedCo to bring together Axiata and Telenor’s Asian operations unique combination of scale, competencies and vast experiences in leading and managing emerging and frontier markets.
“The parties have also stated their stipulated intention to list the mergedco on Bursa Malaysia and another major international exchange within the next few years.
“As a global champion, the MergedCo will now include a Malaysian champion, a global towerco, and the largest innovation centre in this region, all to be headquartered in Malaysia,” it said.
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