Telenor, Axiata Sign Deal for Previously Announced Merger of Malaysian Businesses

   By Dominic Chopping

Norwegian telecom provider Telenor ASA and Malaysian operator Axiata Group Bhd. said Monday they have successfully concluded due diligence and signed an agreement on the proposed merger of their Malaysian mobile operations, Celcom Axiata Bhd. and Digi.

The companies in April said they were in advanced talks on a proposed merger.

They said initial estimates indicate a potential value accretion through cost and capital-expenditure synergies of around $2 billion.

Axiata and Telenor will be equal partners with 33.1% ownership stake each in the merged entity, which will assume Digi's listing on Bursa Malaysia, the companies said.

The merger of Celcom and Digi will result in Axiata receiving newly issued shares in Digi representing 33.1% of the operation's enlarged issued share capital and $470 million in cash, with $400 million coming from Digi as debt in the merged entity and $70 million from Telenor, the companies said.

Completion of the transaction will be subject to the approval of both Axiata and Digi shareholders, regulatory approvals and other customary terms and conditions, the companies said.

The deal is expected to be completed by the second quarter of 2022, the companies said.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

June 21, 2021 01:51 ET (05:51 GMT)

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