Reading Time: 3 minutes
Following the 8 April 2021 announcement that Axiata and Telenor were in advanced discussions on the proposed merger, the signing today signifies a confirmation of the intent to establish a commercially stronger and more resilient digital converged service provider, and leading Malaysian telecom operator positioned to drive Malaysia's digital ambitions.
On a pro forma basis[1], MergeCo will serve an estimated 19 million customers with revenue of RM12.4 billion, EBITDA of RM5.7 billion, Profit After Taxation of RM1.9 billion and Free Cash Flow[2] of RM4.0 billion.
Axiata and Telenor will be equal partners with 33.1 percent ownership stake each in MergeCo, and MergeCo will continue to be listed on Bursa Malaysia Securities Berhad ( Bursa ). Targeted to be among the five largest companies listed on Bursa in terms of market capitalisation, MergeCo is valued at a combined pre-synergy equity value of close to RM50 billion[3].
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 RM8 billion on a net present value basis.
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 RM250 million over five years in building a world-class Innovation Center to be established in Kuala Lumpur with the aim to catalyse the 4IR digital transformation, strengthen the local ecosystem and keep Malaysia at the forefront of the global digital evolution. In taking advantage of new opportunities in the digital economy, the Innovation Center will conduct extensive research and development, develop 5G use cases, support local digital startups, and provide a platform to nurture the creation of a knowledge-based workforce in line with the MyDIGITAL aspirations.
Dato' Izzaddin Idris, President & Group Chief Executive Officer of Axiata said, We are charting good progress in the ongoing merger exercise with Telenor and Digi and remain aligned in our intentions to deliver a strong value proposition that will enable our customers to participate more confidently as the nation transitions towards a digital economy. We look forward to delivering better value and choices to benefit society, especially in bridging the divide in rural areas and assisting the Home and Enterprise businesses take advantage of new opportunities in this digitally accelerated environment.
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 J rgen A. Rostrup, Executive Vice President and Head of Asia in Telenor Group.
As stated in the initial announcement, Axiata and Telenor have agreed to nominate Dato' Izzaddin Idris as Chair, J rgen C. Arentz Rostrup as Deputy Chair, Idham Nawawi as CEO and Albern Murty as deputy CEO of MergeCo, which will be renamed to Celcom Digi Berhad subject to MergeCo's shareholders' approval.
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 Telenor also reiterated their commitment to protect employee welfare with no forced retrenchments. MergeCo is slated to create opportunities for staff to continue to develop across functions, build new competence and be part of future growth of the merged company.
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 RM2.0 billion of which approximately RM1.7 billion will come from Digi as debt in MergeCo and approximately RM300 million from Telenor as part of an ownership equalisation under the terms of the proposed merger.
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.
[1] Based on the financial year ended 31 December 2020.
[2] FCF is defined as EBITDA less Capex paid.
[3] After taking into account the issuance of new ordinary shares in Digi.
Press contact: Tormod Sandst , Director Media Relations, Telenor Group
+47 90 94 32 15 | Tormod.Sandsto@telenor.com
Anuja Ravendran, Corporate Communications, Axiata Group Berhad | +6012-2380581 | anuja@axiata.com
Europe Stories
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
03/03/2026
For many, finding time or headspace to pick up a book can feel out of reach, but...
03/03/2026
Rohde & Schwarz and Realtek demonstrate first test solution for Bluetooth LE Hi...
03/03/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
03/03/2026
Luxembourg, 2 March 2026 -- SES S.A. fully consolidates Intelsat from 17 July 2025 and announces financial results for the year ended 31 December 2025
FY25 Pe...
03/03/2026
03 Mar 2026
VEON and MeetKai Expand Collaboration to Explore Sovereign AI Infra...
03/03/2026
Tuesday 3 March 2026
Sky releases official trailer for The Miniature Wife, a Sk...
03/03/2026
Tuesday 3 March 2026
Ryan Reynolds and Rob Mac land first ever live commentary ...
03/03/2026
Tuesday 3 March 2026
The Dyers' Caravan Park reopens for a second season after a hit launch on Sky
The Dyers' Caravan Park
JPEG (510KB)
Sky books a ...
03/03/2026
Harmonic's cOS Virtualized Broadband Platform Simplifies Network Operations, Lowers Hardware Dependency and Enables Seamless DOCSIS and Fiber Growth SAN JO...
03/03/2026
Comscore to Announce Fourth Quarter and Full Year 2025 Financial ResultsRESTON, VA, March 3, 2026 Comscore, Inc. (Nasdaq: SCOR), a trusted partner for plannin...
03/03/2026
Self-taught on iMovie, Hanagami transitioned to Final Cut Pro in 2009, discovering that professional tools could give him full creative control over how his wor...
03/03/2026
RT Media Sales has announced Spry Finance has renewed it's sponsorship of M...
02/03/2026
Rohde & Schwarz demonstrates FR1-FR3 carrier aggregation, advancing 6G readiness Rohde & Schwarz and Qualcomm Technologies, Inc. have reached another pivotal ...
02/03/2026
aconnic AG (ISIN: DE000A0LBKW6), Munich, and Arqit Quantum Inc. (Nasdaq: ARQQ, A...
02/03/2026
Luxembourg, February 26, 2026 - SES and Africa Mobile Network (AMN) have expande...
02/03/2026
Monday 2 March 2026
Saturday Night Live UK announces writing team
L-R: Jonno Johnson; Charlie Skelton; Celya AB; Omar Badawy; Gr inne Maguire; Laura Claxton; ...
27/02/2026
Since its inception, Gorillaz has been known for blending art with genre-bending...
27/02/2026
This week, Spotify introduced Audiobook Charts for the U.S. and U.K. The charts make it easy to discover your next favorite book by showing what's popular a...
27/02/2026
Rohde & Schwarz and Viasat to collaborate on NB-NTN IoT test plan for connectivi...
27/02/2026
In media technology, big features often steal the spotlight - AI integrations, cloud transformations, automation frameworks. But for the people who use these to...
27/02/2026
Digital Asset Management systems sit at the heart of most marcoms operations. They centralise content, organise it, and make it discoverable. Integrated with th...
27/02/2026
The AI Wild West comes to NAB 2026 and Blue Lucy is bringing the Sheriff
The AI Wild West is here, and media organisations are feeling the heat. On Booth W23...
27/02/2026
A deeply personal, uncompromising portrait of the legendary punk rock iconFriday...
27/02/2026
One of Ireland's favourite lifestyle shows Home of the Year, returns for its 12th series and will be proudly sponsored by SIRO. The brand-new series will ai...
27/02/2026
Our Farm: A GIY Story lands on RT One and RT Player from March 3
From walled garden to community farm, new six-part series captures the unfiltered realities...
27/02/2026
Note: English version included below the Irish language version.
Seachtain na Gaeilge 2026 ar RT
A Ghaeilge mo cheol th '
T feachtas athnuaite i n...
26/02/2026
Rohde & Schwarz awarded contract by Israel Airports Authority for QPS201 securit...
26/02/2026
Rohde & Schwarz highlights its unique CMX500 one-box tester tailored for NTN tes...
26/02/2026
Rohde & Schwarz high-efficiency transmitter powers next-gen broadcast services i...
26/02/2026
Rohde & Schwarz highlights its comprehensive embedded systems test solutions at ...
26/02/2026
Rohde & Schwarz to showcase spectrum security and network efficiency solutions a...
26/02/2026
Rohde & Schwarz and Broadcom showcase first Wi-Fi 8 RF signaling tests, paving w...
26/02/2026
Rohde & Schwarz advances AI-RAN testing using digital twins with NVIDIA Rohde & Schwarz, in collaboration with NVIDIA, continues to drive AI-RAN innovation fo...
26/02/2026
Rohde & Schwarz and LITEON demonstrate high throughput 5G femtocell testing with...
26/02/2026
The agreement ensures Europe's satellite-based augmentation continues enhanc...
26/02/2026
There were two big wins for RT KIDS shows at the 17th Kidscreen Awards in San Diego this week with Maddie Triggs and BeddyByes both taking home gongs.
The K...
26/02/2026
26 Feb 2026
VEON to Release FY25 Earnings Update on March 13, 2026 Dubai and New York, February 26, 2026 - VEON Ltd. (NASDAQ: VEON), a global digital operator ...
26/02/2026
What can I watch on UKTV and stream on U this week?
This week's highlights include new episodes of Will and Ralf Should Know Better, The Marlow Murder Club...
26/02/2026
Thursday 26 February 2026
Sky partners with STARZ on high-impact boxing drama F...
26/02/2026
Thursday 26 February 2026
An Open Letter to Our Fellow Leaders in Global Media
From:
Tim Davie, BBC Director-General
Jon Slade, CEO, Financial Times
Anna B...
26/02/2026
Wuppertal February 26, 2026
Teatro alla Scala Elevates Backstage Communication with Riedel's BoleroRiedel Communications today announced that Fondazione T...
26/02/2026
RT has confirmed that it has today received payment from the GAA for its 50% share of GAAGO.
RT confirmed in February 2025 that it had agreed in principle wi...
26/02/2026
RT Statement regarding the broadcast of Republic of Ireland vs Israel Nations League fixture
If the match goes ahead and that is a decision for the FAI as ...
25/02/2026
It's never been easier to customize your Spotify listening experience. Last year, we introduced more control over the way your playlist sounds, giving Premi...
Reading Time: 3 minutes
