Telenor Group and Axiata Group have closed in on a deal to merge their Malaysian mobile operations Digi and Celcom, with a proposal to see each taking a 33.1 percent stake in the new entity.
The companies are at an advanced stage in their talks and a deal could be closed this quarter, following due diligence. The transaction will be subject to approval by the Digi board, Celcom shareholders and regulators.
Telenor EVP and head of Asia Jorgen Arentz Rostrup said the proposed merger would be an important milestone in the operator’s strategy to strengthen its Asian presence and create value in the region.
As part of the transaction, Axiata will receive newly issued shares in Digi representing 33.1 percent post-transaction shareholding and a cash equalization amount of around $483.5 million.