Telenor And Axiata In Advanced Discussions To Merge Malaysian Operations ("Proposed Transaction")

Back Apr 08, 2021
Type Announcement
Subject OTHERS
Description

TELENOR AND AXIATA IN ADVANCED DISCUSSIONS TO MERGE MALAYSIAN OPERATIONS ("PROPOSED TRANSACTION")

(Unless otherwise stated, all abbreviations and definitions used herein shall have the same meaning as defined in the Company’s announcement dated 8 April 2021 except where the context otherwise defined herein)

 

The Board of Directors of Digi.Com Berhad (“Digi”) was informed by Telenor ASA (“Telenor”), the parent company of Digi's largest shareholder, Telenor Asia Pte Ltd, that Telenor and Axiata Group Berhad (“Axiata”) are in discussion to merge the telco operations of Celcom and Digi (“MergeCo”), in which the parties will have an equal ownership of 33.1% each.


The parties aim to create a leading telecommunication service provider in Malaysia with the capabilities to drive research and innovation, and facilitate a platform for accelerated digital growth in the local ecosystem. A progressive digital economy is important to Malaysia’s future economic resilience and competitiveness, and the MergeCo will be well positioned for delivering industry innovation, high-quality connectivity, and a diversified value proposition to the customers.


The Board of Digi.Com Berhad has been informed that Telenor and Axiata will work towards finalising agreements in relation to the proposed transaction within the second quarter of 2021 following due diligence.


The transaction will be subject to relevant board and shareholder approvals by Digi and Celcom, receipt of regulatory approvals, and other customary terms and conditions. The parties acknowledge that there is no certainty that these discussions will result in any agreement.

 

The transaction may have a material impact on our Group, which will depend on the outcome on the on-going discussion between Telenor and Axiata, and various other factors including a due diligence exercise. 

 

This announcement is dated 8 April 2021.




Announcement Info

Company Name DIGI.COM BERHAD
Stock Name DIGI
Date Announced 08 Apr 2021
Category General Announcement for PLC
Reference Number GA1-06042021-00122