Axiata Group Bhd, Telenor Asia Pte Ltd and Digi.com Bhd (Digi) have finally completed the merger of the telecommunications operations of Malaysia’s well-known telcos, Celcom Axiata Bhd and Digi, becoming the country’s largest telco.
Axiata announced in a filing with Bursa Malaysia that they will each own 33.1% of Celcom Digi, resulting in equal ownership.
Upon completion, Axiata acquired recently issued Digi shares representing 33.1% with cash of RM2.5 billion funded by Digi and to be assumed by the merged entity of Celcom Digi.
Digi also issued shares to Telenor to obtain equal ownership following Telenor’s payment of RM300 million to Axiata.
“In driving the consolidation process, the parties will move towards forming a world-class Malaysian digital telco that will contribute significantly to the growth of the country’s digital ecosystem and economy.
“Celcom Digi will be the largest local listed technology company on Bursa Malaysia,” Axiata mentioned in the filing.
Axiata and Telenor highlighted on a pro forma basis for the financial year of 2021 in a joint statement that Celcom Digi will be serving an estimated 20 million customers. This is with revenues of RM13 billion and earnings before taxes, interest, depreciation and amortisation of about RM5.8 billion.
“Celcom Digi remains committed to the previously announced synergy target of RM8 billion,” stated the statement.
The parties will leverage their combined capabilities, financial strengths, and experiences to meet the diversified needs of Malaysian customers.
They claimed Celcom Digi will make a viable concept to accelerate the country’s transition to a digitally enabled high-income society.
“Moving forward, I’m confident that Celcom Digi is well placed to serve Malaysian consumers and enterprises seeking to step up on digital competitiveness in the current era,” added the Axiata chairman, Shahril Ridza Ridzuan.
“The launch of Celcom Digi represents a major milestone in Malaysia’s digitalisation journey, aligned with Telenor’s ambition to build leading operators that serve customers with relevant, attractive, and convenient products and services,” said the head of Asia, Telenor and executive vice-president, Jørgen C Arentz Rostrup.
According to the parties, Celcom Digi will contribute up to RM250 million over five years to construct a world-class innovation centre in Kuala Lumpur as part of its nation-building initiatives.
Source: Free Malaysia Today
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