Celcom and Digi to announce merger today?

[ UPDATE 08/04/2021 14:41 ]: Axiata has confirmed that Celcom and Digi will merge to form Celcom Digi Berhad. More details here.

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A few hours ago, The Edge has reported that share trading for both Axiata Group Bhd and Digi.com Bhd have been suspended pending an announcement. This fuels speculation that the two telecommunication companies may announce a possible merger.

Digi’s parent company, Telenor along with Axiata have previously announced plans to form a merged entity in 2019 which will create one of the largest global telecommunications group that covers a market of over 1 billion people in 9 countries. The original plan was to form a merged entity with Telenor holding 56.5% and Axiata with 43.5%. Unfortunately, the merger was called off a few months later.

According to The Edge’s source, expected merger will involve Celcom Axiata and Digi, which would form Malaysia’s largest mobile operator. The move is said to bring financial benefits and greater economy of scale as running a telco business requires large capital expenditure.

It is believed that Axiata will hold a media briefing this afternoon.

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