Axiata Group Berhad (Axiata) and Telenor Asia Pte Ltd (Telenor) on Wednesday announced the completion of the merger of Malaysian cellular arm Celcom Axiata Bhd with Norwegian Telenor Group’s unit Digi.Com, making the merged entity one of the largest technology companies on Bursa Malaysia.

Axiata and Telenor will both hold equal ownership in Celcom Digi at 33.1% each. Malaysian institutional investors such as the Employees Provident Fund, Permodalan Nasional Berhad and the Retirement Fund (Incorporated) among others are also shareholders of the new company.

On a pro forma basis for fiscal 2021, the new company will have an estimated 20 million customers with revenues of RM13 billion ($2.9 billion), said a joint statement.

On completion, Axiata received newly issued Digi shares representing 33.10% of the enlarged share capital of Digi, and a cash consideration of RM2.5 billion ($562 million) funded by Digi. The release said the merged company will remain committed to the previously announced synergy target of RM8 billion ($1.80 billion).

Axiata Group Berhad’s chairman Tan Sri Shahril Ridza Ridzuan said, “It is the culmination of months of meticulous integration work to create Malaysia’s digital champion.”

“Celcom Digi is strategically poised to invest in network expansion and support the growth of Malaysia’s digital ecosystem,” said J?rgen C. Arentz Rostrup, executive vice president and head of Asia, Telenor said.

Celcom Digi will also invest up to RM250 million ($56 million) in building an innovation centre in Kuala Lumpur.

Read More