A proposed merger of Axiata Group and Telenor Group’s Malaysian operations could be sealed within days, the former’s CEO Izzaddin Idris reportedly indicated, tipping the mooted tie-up to provide a major boost to country’s mobile industry.
Reuters reported Idris said in a virtual briefing both companies had concluded the due diligence process and were confident the final agreement would be signed within the next week.
Talks between the pair kicked-off in April, with a proposal for Axiata and Telenor to combine their respective Malaysian mobile operations Digi and Celcom in a deal which will see each group take a 33.1 per cent in the new entity.
Institutional funds will own the remainder of the merged company, dubbed Celcom Digi, and it will be listed on the Malaysian stock exchange.
Idris said shareholders had backed the deal, which he stated will help to restore long-term growth and profitability to the industry.
Should an agreement be reached, Idris said the merger would take between nine and 12 months to complete, depending on regulatory approvals.
This is the pair’s second attempt at a merger, after first exploring the move in 2019.Subscribe to our daily newsletter Back