Under the proposed terms of the deal, should the transaction go ahead both companies will have an equal ownership of 33.1 percent each, with the new entity becoming a leading player, with skills and scale to meet growing needs in Malaysia.
Both parties have agreed on the nomination of Dato’ Izzaddin Idris as chair, Jørgen C. Arentz Rostrup as deputy chair, Idham Nawawi as CEO and Albern Murty as deputy CEO of the soon to be merged to be called Celcom Digi Berhad.
Together Telenor and Axiata aim to create a leading telecoms service provider in Malaysia with the capabilities to drive research and innovation and facilitate a platform for accelerated digital growth in the local ecosystem.
The merged company will be well positioned for delivering industry innovation, high-quality connectivity and a diversified value proposition to the customers.
“The proposed merger represents an important milestone in Telenor Group’s strategy to strengthen its Asian presence and create value in the region,” said Jørgen C. Arentz Rostrup (pictured), executive vice president and head of Telenor Asia.
The new entity will have size and financial capabilities to support Malaysia’s digital aspirations and lead industry development in a connected society. We look forward to partner with Axiata to realize the potential of the new company.”
As part of the transaction, Axiata will also receive newly issued shares in Digi which represents 33.1% of the merged company, with Celcom Digi to continue to be listed on Bursa Malaysia
Both companies aim to finalise agreements in the proposed transaction by Q2 of 2021, subject to approval by Digi Board and Celcom shareholders, regulatory approvals and other customary terms and conditions.
