Telenor, Axiata in talks to combine telecom operations in Asia

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

Norway’s Telenor ASA and Axiata Group Bhd., Malaysia’s biggest wireless carrier, are in talks to combine their Asian telecommunication operations in a “mega merger of equals” to create a company with 300 million customers in nine countries.

The proposed transaction will form an entity with sales of about $13 billion and earnings of about $5.5 billion. Potential savings, or “synergies,” from the deal would amount to about $5 billion, according to Telenor. Telenor shares rose almost 5 percent in early trading in Oslo.

“We aim to create a leading and well-diversified pan-Asian telecom and infrastructure company with substantial synergy potential and strong regional operations,” said Gunn Waersted, the chair of Telenor.

The transaction would provide a stronger foothold for both companies, which have recently seen their ambitions checked in Asia. The combination would be the largest mobile operator in Malaysia, with the merger of Celcom Axiata Bhd. and Telenor’s Digi.Com Bhd., and potentially form a global top five mobile infrastructure company.

Telenor also operates in Thailand, Bangladesh, Pakistan and Myanmar, while Axiata has business in Cambodia, Nepal, Sri Lanka and Indonesia. Axiata’s mobile operations in Bangladesh, Robi, aren’t part of the deal.

Based on the equity value, Telenor would own 56.5 percent of the new company and Axiata the remainder. A final agreement is sought by the third quarter, but the companies said that there’s no certainty that the discussions will result in an accord. They would aim to eventually list the company on an international exchange and in Malaysia.

The deal would continue a transformation for Telenor, which has sold its eastern European businesses and purchased a mobile operator in Finland to focus more on its Nordic home region. Telenor in 2017 sold its unit in India after years of tough competition. Axiata has seen similar troubles, having to exit Singapore and seeing an expansion in Pakistan checked.

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Bloomberg

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.