(Kuala Lumpur/Singapore, 30 November 2022) Axiata Group Berhad (“Axiata”), Telenor Asia Pte Ltd (“Telenor”) and Digi.com Berhad (“Digi”) announced the completion of the merger of the telco operations of Celcom Axiata Berhad (“Celcom”) and Digi (together “Celcom Digi”).  With this, Axiata and Telenor (together “Parties) will both hold equal ownership in Celcom Digi at 33.1 per cent each.

On completion, Axiata received newly issued Digi shares representing 33.10 percent of the enlarged share capital of Digi, and a cash consideration of RM2.5 billion funded by Digi and to be assumed by the merged entity. Digi also issued shares to Telenor to reach equal ownership following Telenor's payment of RM0.3 billion to Axiata.

In driving the consolidation process, the Parties move purposefully to form a world-class Malaysian digital telco that will contribute significantly towards the growth of the country’s digital ecosystem and economy. Celcom Digi will be the largest local listed technology company on Bursa Malaysia. On a pro forma basis for the financial year 2021, Celcom Digi will serve an estimated 20 million customers, with revenues of RM13.0 billion, and an EBITDA of around RM5.8 billion. The company remains committed to the previous announced synergy target of RM 8 billion.

Through the combination of scale, competencies, financial strengths, and experiences in serving the diverse needs of Malaysian consumers, Celcom Digi presents a solid proposition to propel the nation’s transition towards a digitally enabled high-income society. In Telenor’s recent Digital Lives Decoded survey, three out of four Malaysians expect mobile usage to increase whilst nearly two-thirds (63 percent) of Malaysians surveyed believe that mobile connectivity is ‘very important’ to the success of their organisations.

Axiata Group Berhad’s Chairman Tan Sri Shahril Ridza Ridzuan said, “On behalf of the Board of Axiata, I wish to congratulate the Celcom Digi team on this new beginning. It is the culmination of months of meticulous integration work to create Malaysia’s Digital Champion. We thank the Malaysian government, the regulators, Telenor and all our stakeholders, as we take this bold step forward to deliver a more sustainable industry structure whilst effectively meeting the evolving needs of Malaysian society.”

“Celcom Digi is strategically poised to invest in network expansion and support the growth of Malaysia’s digital ecosystem. We are also heartened at the role this tech giant can play in spurring talent development here in our very own backyard, as Malaysia charts advancements in 5G innovations, automation, IoT, AI and cyber resilience, among others. Moving forward, I am confident that Celcom Digi – backed by the global experiences, excellent governance standards and financial strengths of Axiata and Telenor as shareholders, is well placed to serve Malaysian consumers and enterprises seeking to step up on digital competitiveness in the current era.”