Axiata, Telenor to end talks on merging Asian telecom operations

FILE PHOTO - A security officer guards in front of the Axiata headquarters building in Kuala Lumpur May 28, 2014. REUTERS/Samsul Said

Axiata Group Bhd. and Telenor ASA agreed to end talks on merging their Asian telecommunication operations, scrapping an effort to create a company with 300 million customers across nine countries.

Both companies agreed to end discussions, Oslo-based Telenor said in a statement Friday, confirming an earlier Bloomberg News report. Telenor cited “complexities” as the reason for the halt, without elaborating. Telenor shares slid as much as 7% in early Oslo trading.

Axiata said it would explore opportunities to consolidate and optimize its business. Hanne Knudsen, Telenor’s spokeswoman, said by phone that it would now be “business as usual” for the company in Asia, while not ruling out that talks could be picked up again later.

The decision to quash the deal comes months after Malaysian Prime Minister Mahathir Mohamad questioned how combining the companies would affect employment. Telenor had cited about $5 billion in synergies from the combination, which would have created a company with $13 billion of sales. The Norwegian telecom company was to have owned 56.5% of the merged entity under the plan.

Axiata’s board met Friday to discuss the planned merger and decided to cancel the deal, said a person familiar with the talks, who asked not to be identified as the matter is private.

Trading in Axiata shares was halted earlier, pending an announcement.

The companies had planned to have a final agreement on the deal by the third quarter, with Axiata Chief Executive Officer Jamaludin Ibrahim saying last month that the company was still sticking to its timeline for signing the agreement. He cautioned that while most mergers center on commercial interests, this one involves national interest and staff issues as well.

Bloomberg

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.

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.