In a surprising twist that no one saw coming, Two Asian telco giants — Malaysia-based Axiata Group Bhd and Norwegian Telenor Group - have confirmed that upon discussion today a new merged global entity will be established which will also lead to the merger of Celcom and Digi.
This proposed new entity will be called MergedCo where both group's telcos and infrastructure assets could be placed. According to Telenor, "The proposed transaction aims to enable the new merged entity (MergedCo) to bring together Axiata and Telenor's Asian operations unique combination of scale, competencies and vast experiences in leading and managing emerging and frontier markets."
The parties have also shared their intent to list MergedCo on Bursa Malaysia and another major international exchange within the next few years. Being a global champion, MergedCo will now include a Malaysian champion, a global tower company (TowerCo), and the largest innovation center in this region; all this set to be headquartered in Malaysia.
It's also shared that Telenor will still own the majority of MergedCo with 56.5% based on equity value, while Axiata will own 43.5%. Both groups have acknowledged that this is a preliminary subject to adjustments and due diligence in the third quarter of 2019. The transaction will be subjected to approval by shareholders, receipt of regulatory approvals and other customary terms and conditions.
What this means for current Digi and Celcom users is still unknown, but this merger is set to reveal a lot of powerful telecommunication potential; all here within Malaysia. Let's hope this merger brings good news all around, so be sure to check our Facebook page for further updates!