According to Bursa Malaysia filings by Digi.Com and Axiata Group Bhd on Wednesday, the Malaysian Communications and Multimedia Commission (MCMC) has formally received Digi.Com Bhd’s subsidiary Digi Telecommunications Sdn Bhd’s merger application involving the proposed merger of Celcom Axiata Bhd and Digi.mobile Com’s telecommunication network operations (Nov 24).
The filings say Digi.Com and Digi Telecommunications have engaged the MCMC to begin the merger examination process in compliance with the MCMC’s mergers and acquisitions guidelines.
“Digi.Com wishes to inform that its subsidiary Digi Telecommunications’ merger application has been formally received by (the) MCMC for its assessment in accordance with the guidelines.
“The completion of the proposed merger will be amongst others, also subject to approval of the Securities Commission Malaysia and the shareholders of Axiata (Group) and Digi.Com,” Digi.Com said.
The proposed merger of Celcom Axiata and Digi.Com’s mobile telecommunication network operations was announced on April 8, 2021.
The company and Digi.substantial Com’s shareholder Telenor Asia Pte Ltd was in advanced discussions on the merger of Celcom Axiata and Digi.mobile Com’s telecommunication network operations, according to Axiata Group’s Bursa filing at the time, and Axiata Group and Telenor Asia would have equal ownership of about 33.1 percent each in the merged company.
Axiata Group together with Malaysian institutional funds would own over 51% of the merged company, according to Axiata Group.
“As part of the merger transaction, Axiata (Group) will receive newly issued shares in Digi.Com representing 33.1% post-transaction shareholding and cash equalisation amount of around RM2 billion, of which RM1.7 billion to come from Digi.Com as new debt, the balance of RM300 million from Telenor (Asia),” Axiata Group said.
