A formal application relating to the proposed merger of Malaysian mobile network operators (MNOs) Celcom Axiata and Digi has been received by the local regulator, the latter has confirmed. In a press release confirming the development, Digi noted that it has ‘engaged with Malaysian Communications and Multimedia Commission (MCMC) to initiate the merger assessment process in accordance with MCMC’s Guidelines on Mergers and Acquisitions’. It noted that the completion of the tie-up remains subject to, among other things, approval from the Securities Commission Malaysia and Axiata Group and Digi’s shareholders.
As previously reported by CommsUpdate, in June 2021 Axiata Group, Telenor Asia and Digi announced the successful conclusion of a due-diligence exercise, following which they signed transaction agreements for the proposed merger of their Malaysian businesses, Celcom Axiata and Digi (together ‘MergeCo’). Axiata and Telenor will be equal partners in the enlarged company, with each taking a 33.1% ownership stake each in MergeCo, which will be listed on Bursa Malaysia Securities Berhad.