(
Following the
On a pro forma basis1, MergeCo will serve an estimated 19 million customers with revenue of
Axiata and
The integration planning phase will include further detailed work on synergies and business plan of MergeCo, and initial estimates indicate potential value accretion through cost and capex synergies of around
MergeCo will see the combination of the scale, experience, competencies and financial strength of both global telecom groups with the market knowledge of two well-established local companies. Uniquely positioned to address Malaysia’s increasing digital service adoption and expectations of better connectivity, MergeCo will have the capabilities to leverage on technology advancements and attract global internet-based partnerships to deliver a wider range of innovative solutions to its customers. It will be well-placed to fuel the implementation of digital technologies at a time when 5G, IoT, AI and cloud computing are coming together to accelerate digitalisation across all reaches of society.
MergeCo will also aim to make an investment of up to
“Assuming a smooth transition, post integration period, we are expecting to see improvement in EBITDA and cashflow margins in the combined entity in step with our ongoing commitment to maximise dividend payout for our shareholders,” he added.
“We look forward to partner with Axiata to realize the potential of the proposed merged company. The telecom industry is at the beginning of an exciting digital shift, and new technologies are going to change how we develop and deliver services for both the private and public sector. With this merger we bring together competencies, financial strength and scale to go beyond connectivity and implement technology that further advances our customers digital experience,” says Jørgen A. Rostrup, Executive Vice President and Head of
As stated in the initial announcement, Axiata and
From the aspect of Malaysia’s national interests, Axiata and key Malaysian institutional shareholders are expected to own more than 51 percent of MergeCo at completion. Axiata and
At completion, the merger of Celcom and Digi will result in Axiata receiving newly issued ordinary shares in Digi, representing 33.1 percent of the enlarged issued share capital of Digi, cash consideration of
Completion of the transaction will be subject to the approval of both Axiata and Digi shareholders, regulatory approvals and other customary terms and conditions. Barring unforeseen circumstances, the Proposed Merger is expected to be completed by the second quarter of 2022.
Press contacts:
Tormod Sandstø,
Director Media Relations,
+47 90 94 32 15 | Tormod.Sandsto@telenor.com
Anuja Ravendran
Corporate Communications, Axiata Group Berhad
+6012-2380581 | anuja@axiata.com
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1 Based on the financial year ended
2 FCF is defined as EBITDA less Capex paid.
3 After taking into account the issuance of new ordinary shares in Digi.
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