Clearance for the proposed merger of Malaysian communications providers Digi Telecommunications, a subsidiary of Norway’s Telenor Group, and Axiata Group’s Celcom, has been granted by the Securities Commission Malaysia. In a statement confirming the development, Telenor Group noted that the proposed transaction will now be subject to approval of Bursa Malaysia, as well as Axiata and Digi shareholders. According to the Norwegian company, the transaction is expected to close ‘within year end’.
As previously reported by CommsUpdate, plans for a tie-up of Celcom and Digi were first confirmed back in June 2021, with a formal application for the merger subsequently lodged with the Malaysian Communications and Multimedia Commission (MCMC) in November 2021. With the local telecoms regulator having confirmed its approval for the deal in June 2022, it was noted that this was subject to a number of undertakings that the two operators had submitted after the MCMC in April 2022 raised potential issues that could arise from the tie-up. Upon completion, Axiata and Telenor will each hold equal ownership of 33.1% in the new merged company, which will be named Celcom Digi Berhad and will continue to be listed on Bursa Malaysia.