Axiata and Telenor now hold equal ownership in Celcom Digi at 33.1% each
Axiata Group and Telenor Group have completed the merger of Malaysian operators Celcom and Digi, both companies said in a joint release.
The boards of the composite companies gave final approval for the merger last month.
Following the completion of the merger, Axiata and Telenor now hold equal ownership in Celcom Digi at 33.1% each.
Celcom Digi will serve an estimated 20 million customers, with revenues of MYR 13.0 billion ($2.9 billion), and an EBITDA of around MYR5.8 billion. The company also said it remains committed to the previous announced synergy target of MYR8 billion.
Axiata Group’s Chairman Tan Sri Shahril Ridza Ridzuan said: “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.”
Telenor EVP and head of Asia Jorgen Arentz Rostrup added that his company was “committed to be an active owner, bringing technology know-how, experience across international markets and global partnerships with industry giants to Celcom Digi.”
The two companies also noted that Celcom Digi will also invest up to MYR 250 million over the next five years in building an innovation center in Kuala Lumpur to push developments in areas including AI, 5G, cloud computing and IoT.
In addition to Axiata and Telenor, Malaysian institutional investors such as the Employees Provident Fund, Permodalan Nasional Berhad and the Retirement Fund among others are also shareholders of the new company.
Other mobile operators in the country are Maxis, Telekom Malaysia, YTL Communications and U Mobile.
Malaysian telecom operators recently signed access agreements with state-run wholesale 5G network operator Digital Nasional Berhad (DNB).
DNB is a special-purpose vehicle set up by the Malaysian government with the main goal of deploying and managing Malaysia’s 5G network.
According to DNB, 5G coverage in Malaysia has already reached over 30% of populated areas and is on track to achieve the 80% target set by the government by 2024.
DNB had previously confirmed that it had already executed share subscription agreements with four Malaysian telcos – Celcom, Digi, YTL, and Telekom Malaysia – which will collectively take up a 65% stake in the state-run firm.
Celcom and Digi will each take up a 12.5% stake, while YTL and Telekom Malaysia will own a 20% stake each. The government, via the Ministry of Finance, will retain a 35% stake.
DNB previously said that the entire 5G network rollout is expected to cost MYR 16.5 billion over the next 10 years. This is made up of MYR 12.5 billion for the 5G network equipment and infrastructure as well as MYR 4 billion in corporate costs.
