Axiata, Norway’s Telenor in advanced discussions to merge Malaysian telco units

The Axiata headquarters building is seen in Kuala Lumpur May 28, 2014. REUTERS/Samsul Said/Files

Axiata Group Bhd and Norway’s Telenor Group are in advanced discussions to merge their Malaysian telecom operations to create the largest mobile operator in the country.

The companies seek to combine Celcom Axiata Bhd and to form Celcom Digi, in which they will have equal ownership of 33.1% each, Axiata said in a statement on Thursday. The combined entity will continue to be listed on Bursa Malaysia. 

As part of the proposed transaction, Axiata will receive newly issued shares in Digi and a cash consideration of around 2 billion ringgit ($483.56 million), of which 1.7 billion ringgit will come from Digi as new debt and the rest from Telenor, the Malaysian firm said.

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