Axiata, Telenor, Digi sign agreements to merge Malaysian mobile ops


KUALA LUMPUR: Axiata Group Bhd, Telenor Asia Pte Ltd and Digi.Com Bhd have signed the transaction agreements for the proposed merger of Celcom Axiata Bhd and Digi.

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.

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

CIMB Islamic to roll out no-frills CIMB Lite-i credit card
Aemulus unit secures RM17.68mil in orders for automotive device test systems
FBM KLCI down at midday amid regional tech sell-off
RNG Tech to deploy 1,120 massage chairs across Malaysia to drive expansion
Japan's Nikkei falls as Samsung-led chip selloff weighs on regional tech stocks
Australia, NZ dollars position for uncertain RBNZ outcome
Oil prices gain as focus shifts to supply recovery and demand
Ringgit opens slightly higher against greenback amid focus on Fed outlook
Traders stay cautious ahead of OPR decision, Johor elections
Trading ideas: SimeProp, WCT, Carlsberg, Berjaya Property, Hibiscus, Careplus, ECM Libra, BM Greentech, Rimbunan Sawit, Asdion, Permaju, RT Pastry, Enest

Others Also Read