Axiata Group, Telenor Asia and Digi.com Berhad have announced the completion of the merger of Malaysian communications providers Celcom Axiata and Digi. In a press release confirming the development it was revealed that the enlarged entity will take on the Celcom Digi corporate name, with Axiata and Telenor each holding stakes of 33.1% in it.
With regards to specifics of the completed transaction, it was noted that Axiata had received newly issued Digi shares representing 33.1% of the enlarged share capital of Digi, and a cash consideration of MYR2.5 billion (USD559 million) funded by Digi and to be assumed by the merged entity. Meanwhile, Digi has reportedly issued shares to Telenor to reach equal ownership following Telenor’s payment of MYR300 million to Axiata. In addition to Axiata and Telenor, Malaysian institutional investors such as the Employees Provident Fund, Permodalan Nasional Berhad and the Retirement Fund (Incorporated) are reported to be among the other shareholders of the newly enlarged company.
In the wake of the deal’s completion, both Celcom and Digi have posted a raft of new information to their respective websites related to the matter. Among the frequently asked questions that the pair have pre-emptively answered, there was confirmation that both the Celcom and Digi brands will continue in operation. It was, however, noted that customers ‘may see an additional ‘Celcom Digi’ logo together with these brands … really to signify that [they] are now one company’. With regards to the two operators’ existing networks, meanwhile, the companies have said they do intend to start rolling out ‘an infrastructure upgrade that will gradually elevate the overall network experience’ at some point in the future, but for now have suggested customers will continue to utilise the network of the provider they signed up to only. Further, it was added that the merger will not impact tariffs for existing subscriptions.