OSLO, NORWAY: Axiata Group Berhad and Telenor Group have successfully concluded the due-diligence exercise and signed an agreement on the proposed merger of the Malaysian mobile operations, Celcom Axiata Berhad and Digi.

Following the 8 April 2021 announcement that Axiata and Telenor were in advanced discussions on the proposed merger, the signing today signifies a confirmation of the intent to establish a commercially stronger and more resilient digital converged service provider, and leading Malaysian telecom operator positioned to drive Malaysia’s digital ambitions.

The merged entity will see the combination of the scale, experience, competencies and financial strength of both global telecom Groups. The integration planning phase will include further work on synergies and business plan. Initial estimates indicate a potential value accretion through cost and capex synergies of net present value of around USD 2 billion.

Axiata and Telenor will be equal partners with 33.1 percent ownership stake each in the merged entity, which will assume Digi’s listing on Bursa Malaysia.

At completion, the merger of Celcom and Digi will result in Axiata receiving newly issued shares in Digi representing 33.1% of the enlarged issued share capital of Digi, cash consideration of app USD 470 million of which USD 400 million will come from Digi as debt in the merged entity and approximately USD 70 million from Telenor as part of an ownership equalisation under the terms of the merger.

Completion of the transaction will be subject to the approval of both Axiata and Digi shareholders, regulatory approvals and other customary terms and conditions. Barring unforeseen circumstances, the Proposed Merger is expected to be completed by the second quarter of 2022.

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18 Jun, 4:00 pm GMT-4 ·Disclaimer