Telenor and Axiata in discussions to merge Malaysian operations
Add to Telenor Group and Axiata Group Berhad are in advanced discussions regarding a potential merger between its mobile operations, Celcom and Digi, in Malaysia.
Both parties will have an equal ownership of 33.1% in the combined entity. As part of the transaction, Axiata will receive newly issued shares in Digi, a cash consideration from new debt in the merged company of approximately USD 400 million (around NOK 3.4 billion) and approximately USD 70 million (around NOK 600 million) from Telenor Group.
The parties aim to create the leading telecommunication operator in Malaysia. A transaction will realise synergies and provide value for shareholders in line with our strategy of further developing Telenor’s Asian portfolio.
Axiata and Telenor will work towards finalising agreements in relation to the proposed transaction within the second quarter of 2021 following due diligence. The parties acknowledge that there is no certainty that the discussions will result in a final agreement.
The transaction will be subject to approval by Celcom and Digi shareholders, receipt of regulatory and other customary approvals.
Pro-forma revenue of the combined entity is approximately USD 3.0 billion (around NOK 25.5 billion), EBITDA of around USD 1.4 billion (around NOK 11.7 billion) and with a total mobile subscriber base of approximately 19 million customers.