Axiata said in a statement the parties have concluded the due-diligence exercise and confirmed their intent to converge the Malaysian mobile operations to establish a more more-resilient and leading local telco.
Upon successful completion of the transaction, the merged entity will have an estimated 19 million customers with revenue of RM12.4bil, Ebitda of RM5.7bil, profit after tax of RM1.9bil and fresh cash flow of RM4bil, it said.
The proposed transaction remains subject to shareholder and regulatory approvals, and is expected to be completed by the second quarter of 2022.
“We are charting good progress in the ongoing merger exercise with Telenor and Digi and remain aligned in our intentions to deliver a strong value proposition that will enable our customers to participate more confidently as the nation transitions towards a digital economy.
"We look forward to delivering better value and choices to benefit society, especially in bridging the divide in rural areas and assisting the Home and Enterprise businesses take advantage of new opportunities in this digitally accelerated environment,” said Axiata president and group CEO Datuk Izzaddin Idris.
Telenor group executive vice president and head of Asia Jorgen A Rostrup added that the telecom industry is undergoing a digital shift with new technologies changing the development and delivery of services.
"With this merger we bring together competencies, financial strength and scale to go beyond connectivity and implement technology that further advances our customers digital experience,” he said.