Axiata Group Bhd and Norway-based Telenor Group are in search of to merge their Asian operations whereas discussions involving a possible non-cash mixture of their telecom and infrastructure belongings in Asia are in the works.
In accordance to The Star, Telenor Group owns a majority 49% stake in DiGi.com Bhd whereas Axiata Group Bhd owns Celcom Axiata Berhad fully.
The new merged entity ensuing from the wedding of Telenor and Axiata can be referred to as MergedCo, of which Telenor will personal 56.5% and Axiata will personal 43.5%, primarily based on fairness worth. Each events have acknowledged that that is preliminary, and topic to changes and due diligence.
Because of this the merger between Celcom Axiata Berhad and DiGi.com will type the biggest cellular service operator in Malaysia, in accordance to SoyaCincau.
“The potential non-cash combination of telecom and infrastructure assets aims to create a leading, well diversified Pan-Asian telco with operations in nine countries with a population of close to one billion people and 300 million customers, and become one of Asia’s largest mobile infrastructure companies operating approximately 60,000 towers across Asia,” stated Telenor, in a press release.
Nevertheless, in accordance to DiGi, it’s not confirmed that there can be any transaction settlement between the events following these discussions.
In the meantime, Telenor and Axiata are working in direction of finishing the agreements concerning the proposed transaction inside the third quarter of 2019, in accordance to The Edge Markets.
“Today, we announce that Telenor and Axiata are in discussions on joining forces in Asia, one of the most dynamic and innovative regions in the world,” stated Telenor Group chair Gunn Wærsted.
“Together, we aim to create a leading and well-diversified pan-Asian telecom and infrastructure company with substantial synergy potential and strong regional operations.”
“It is Telenor’s strategy to develop and create value from our core telco assets in the Nordic and Asian region. This potential merger is in line with that strategy, set by the Board and Management.”
Buying and selling in the shares of DiGi and Axiata has been suspended for the complete day. Shares of DiGi have been final closed at RM4.52 final Friday, whereas Axiata settled at RM4.04.
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