Axiata Group, Telenor Asia and Digi.com announced the completion of the merger of the operations of Celcom Axiata and Digi to form Celcom Digi in Malaysia.
Axiata and Telenor will both hold equal ownership in Celcom Digi at 33.1 percent each.
Axiata received a cash consideration of RM2.5 billion funded by Digi and to be assumed by the merged entity. Telenor paid RM0.3 billion to Axiata.
Celcom Digi will be the largest local listed technology company on Bursa Malaysia. Celcom Digi will serve 20 million customers, with revenues of RM13 billion, and EBITDA of around RM5.8 billion. The company remains committed to the previous announced synergy target of RM 8 billion.
Celcom Digi will invest up to RM250 million over five years in building an Innovation Center in Kuala Lumpur. The aim is to catalyse the 4IR digital transformation and strengthen the local ecosystem through the adoption of IoT, AI, cloud computing and 5G.
In addition to Axiata and Telenor, Malaysian institutional investors such as the Employees Provident Fund, Permodalan Nasional Berhad and the Retirement Fund (Incorporated) among others are also shareholders of the new company.