UOB Kay Hian: RM500m annual cost savings from Celcom-Digi merger

“We believe Digi will remain committed to paying out 100% of its net profits as dividends," says UOB Kay Hian Malaysia Research.

KUALA LUMPUR: UOB Kay Hian Malaysia Research expects the merger between Celcom and Digi to realise annual cost savings of RM500mil when it crystalises.

In its research note on Friday, it said a total of RM15bil to RM20bil of synergies were earmarked in the 2018 proposed Telenor Asia-Axiata merger, however the earlier merger did not go through. From that RM15bil to RM20bil amount, 50% would come off synergies from Malaysia (Celcom-Digi).