Telenor and Axiata are in advanced talks to merge their Malaysian mobile operations in order to improve efficiency and cut costs.
Telenor Group and Axiata Group will own 33.1 percent stake each in the combined business of Digi and Celcom.
Telenor brand Digi had 10.44 million mobile phone subscribers in Malaysia during the fourth quarter of 2020. Digi had an ARPU of 41.6 MYR during the fourth quarter. Digi had reported revenue of NOK 2,854 million in Q4. Capex of Digi was NOK 600 million.
“The proposed merger represents an important milestone in Telenor Group’s strategy to strengthen its Asian presence and create value in the region,” said Jorgen C Arentz Rostrup, executive vice president and head of Telenor Asia.
Both parties have agreed to nominate Dato’ Izzaddin Idris as chair, Jorgen C. Arentz Rostrup as deputy chair, Idham Nawawi as CEO and Albern Murty as deputy CEO of the merged company which will be named Celcom Digi.
Celcom Digi will continue to be listed on Bursa Malaysia and will be amongst the top stocks in terms of market capitalization.
Telenor and Axiata will be finalizing agreements within the second quarter of 2021 following due diligence.
The transaction will be subject to approval by Digi Board and Celcom shareholder, receipt of regulatory approvals and other customary terms and conditions.