Telenor Group said its Malaysian subsidiary Digi.Com and Axiata Group have received a Notice of No Objection from the Malaysian Communications and Multimedia Commission (MCMC) on the proposed merger of Celcom and Digi’s telco operations.
With this notice the MCMC consents for the parties to advance to the next phase of the proposed transaction. The completion of the proposed transaction will now be subject to the approval of the Securities Commission, Bursa Malaysia, and by both Axiata and Digi shareholders.
“With the proposed structural moves in Thailand and Malaysia, Telenor has a clear ambition to create future-fit companies that can better support ambitious national digital aspirations and bring new, advanced services to consumers across the region,” said Jorgen Arentz Rostrup, Executive Vice President and Head of Telenor Asia.
The merged company has proposed to invest up to $55 million over five years to build an Innovation Centre in Kuala Lumpur, Malaysia. The Innovation Centre will be focusing on 5G, AI and IOT technology as well as supporting local digital start-ups.
The parties estimate that the merger will be completed within the second half of 2022 as announced previously. Axiata and Telenor will hold equal ownership of 33.1 percent each in the new merged company.