Axiata Group and DiGi.com Shares Rise After Proposed Merger Gets Regulatory Nod
June 29 2022 - 12:14AM
Dow Jones News
By Yi Wei Wong
Shares of Axiata Group Bhd. and DiGi.com Bhd. rise in early
trade after the Malaysian Communications and Multimedia Commission
issued a notice of no objection to the proposed merger between
DiGi.com and Axiata Group's mobile operations.
Digi.Com's shares are currently up 4.3% at 3.39 Malaysian
ringgit ($0.77), while Axiata Group adds 3.9% to MYR2.92.
In a joint statement on Wednesday, both telecommunications
companies say the approval "paves the way for parties to advance to
the next phase of regulatory and shareholder approvals."
The merger was first announced in June 2021, when Norwegian
telecommunications provider Telenor ASA and Malaysian
telecommunications operator Axiata Group said they had signed an
agreement for a merger of their Malaysian mobile operations,
Axiata's Celcom Axiata Bhd. and Telenor's DiGi.com, in a deal that
could form the Southeast Asian country's largest mobile
operator.
According to the terms of the merger, both Axiata and Telenor
will be equal partners with a 33.1% ownership stake in the merged
company, which will be then named Celcom Digi Berhad and will
continue to be listed on Malaysia's bourse.
The completion of the proposed transaction will now be subject
to the approval of Malaysia's Securities Commission, Bursa Malaysia
and shareholders of both companies, the joint release says.
Both companies estimate the merger will be completed in the
second half of 2022.
Write to Yi Wei Wong at yiwei.wong@wsj.com
(END) Dow Jones Newswires
June 28, 2022 23:59 ET (03:59 GMT)
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