Malaysian telecoms firm Axiata Group Bhd & Norway’s Telenor ASA signed an Agreement to merge their mobile operations in a $15 billion deal forming a new market leader. In April they were in talks to merge Celcom Axiata Bhd & DiGi.com Bhd where both the parties would own 33.1% each. The combination of the country’s second & third largest mobile services providers is going to earn annual revenue of $3 billion, with a profitability of $1.4 billion from a subscriber base of 19 million. The merger will prove beneficial in terms of improved network coverage & quality. The improved efficiency will definitely provide a stronghold over 5G implementation in the near future. The transaction is waiting for regulatory & other approvals & complete somewhere in the second quarter of 2022. 100% equity interest from Celcom Axiata would be transferred to Digi, to sum up, an amount of 17.76 billion ringgit ($4.3 billion). Axiata would receive newly issued shares in Digi & a cash consideration of about 1.7 billion ringgit as debt in the merged company as a part of the collaboration.
Source: Economic Times Telecom