If the agreement is implemented, it will bring a positive contribution of NOK 11.7 billion to Telenor’s results.
The case is being updated…
Telenor and Axiata confirmed in a statement on Thursday that they are about to merge the mobile companies Celecom and Digi of the two companies in Malaysia.
Both parties will have a 33.1% equal ownership interest in the company. As part of the transaction, Axiata will obtain Digi’s newly issued shares. The cash comes from the company’s new debt in cash consideration, which is approximately US$400 million, equivalent to 3.4 billion Norwegian kroner, or approximately 70 million US dollars, or 600 million Norwegian kroner. .
Telenor’s operating income will be approximately 25.5 billion Norwegian kroner, and operating profit (EBITDA) will be approximately 11.7 billion Norwegian kroner. In addition, the company will have approximately 19 million mobile users.
The two companies hope to complete the agreement by the second quarter of 2021. It is uncertain whether these discussions will lead to a final agreement.
-The proposed merger is an important milestone in Telenor’s strategy to strengthen its business in Asia and create value in the region. The new entity will have the scale and financial strength needed to support Malaysia’s digital ambitions and lead industrial development in an interconnected society. Jørgen C. Arentz Rostrup of Telenor said that we look forward to working with Axiata to realize the potential of the new company.
Bloomberg and other media reported the news earlier Thursday.
Trading in Axiata and Digi’s shares were suspended on the Bursa Securities Exchange on Thursday. Axiata held a press conference.
In September 2019, negotiations on the merger of the two parties were stopped, but no agreement was reached. It has to do with possible mergers at the time after “complexity”.
The two companies conducted a comprehensive company review of each other, but the agreement failed to pass.
Malaysian newspapers reported that the merger process was deadlocked due to political differences over the import of palm oil from Indonesia to Europe. According to the Malaysian newspaper, Axiata in Malaysia is the second largest telecommunications operator in Indonesia with a large population, without the support of the Indonesian authorities. star Then the merger is almost impossible.
According to the paper, Norway is considered part of the European Union, which puts pressure on palm oil imports from Indonesia (the world’s largest palm oil exporter).
After deciding to ban the use of palm oil as a raw material for biofuel production, Malaysian authorities cracked down on Norway in December 2018.