Axiata, Telenor in merger talks to create telecoms giant

Customers make payments at a Celcom mobile telecom outlet at Putrajaya on Monday, May 6, 2019. Malaysia's Axiata Group Berhad says it is in talks with Norway's Telenor ASA to merge their Asian operations to create one of the world's top telecommunications giants with some 300 million customers in nine countries. (AP Photo/Vincent Thian)
Customers walk past a Celcom mobile telecom outlet on Monday, May 6, 2019, in Putrajaya, Malaysia. Malaysia's Axiata Group Berhad says it is in talks with Norway's Telenor ASA to merge their Asian operations to create one of the world's top telecommunications giants with some 300 million customers in nine countries.(AP Photo/Vincent Thian)
Customers walk past a Digi mobile telecom outlet Monday, May 6, 2019, in Putrajaya, Malaysia. Malaysia's Axiata Group Berhad says it is in talks with Norway's Telenor ASA to merge their Asian operations to create one of the world's top telecommunications giants with some 300 million customers in nine countries.(AP Photo/Vincent Thian)

KUALA LUMPUR, Malaysia — Malaysia's Axiata Group Berhad said Monday it is in talks with Norway's Telenor ASA to merge their Asian operations to create one of the world's top telecommunications giants with some 300 million customers in nine countries.

Axiata said in a statement that Telenor is expected to hold a 56.5 percent stake and Axiata 43.5 percent in the proposed "merger of equals."

Both companies operate in Malaysia, Thailand, Myanmar, Bangladesh and Pakistan. Axiata also has a presence in India, Sri Lanka, Nepal, Cambodia and Indonesia but it said its Bangladesh operation would be excluded.

Axiata said merged company could be the largest telecom operator in the region and potentially one of the world's top five mobile infrastructure players. In Malaysia, the union of Axiata's Celcom and Telenor's Digi in Malaysia will form the largest mobile operator in the country.

Annual sales for the merged regional entity are estimated at more than 50 billion ringgit ($12 billion), with earnings of over 20 million ringgit ($4.8 billion), it said. In addition, the merger could translate to potential savings of 20 billion ringgit ($4.8 billion) with economies of scale and scope. Axiata said the merged company will be listed on the Malaysian bourse and later in an international stock exchange.

"We are on the verge of making a new history. This proposed mega merger of equals would create a global champion.... of the nine markets, the new merger will allow us to stake number one positions in six countries," said Axiata President and Group Chief Executive Jamaludin Ibrahim.

Axiata said the companies hope to reach an agreement by the third quarter this year.

Must Read

AP Interview: Mahathir says opposition can win Malaysia vote

Sep 18, 2017

Former Malaysian Prime Minister Mahathir Mohamad says in an AP interview the opposition alliance...

Malaysia's top court annuls unilateral conversions of minors

Jan 29, 2018

Malaysia's top court in a landmark decision says both parents must consent to the religious...

Opposition election win in Malaysia ups economic uncertainty

May 10, 2018

Opposition election victory in Malaysia raises economic uncertainty, despite Mahathir's strong...

Ex-strongman seeks legacy as savior of Malaysia's democracy

May 11, 2018

Former strongman Mahathir Mohamad was an unlikely choice to steer Malaysia on a more democratic...

Malaysia's reformist icon Anwar freed, given royal pardon

May 16, 2018

Malaysia's reformist icon Anwar Ibrahim has been freed from custody after receiving a royal pardon,...

Weather, 20 December
Houston Weather
+7

High: +11° Low: -2°

Humidity: 83%

Wind: NNE - 7 KPH

Canberra Weather
+27

High: +27° Low: +17°

Humidity: 87%

Wind: W - 20 KPH

Roissy-en-France Weather
+6

High: +6° Low: -5°

Humidity: 87%

Wind: ENE - 7 KPH

Florence Weather
+9

High: +9° Low: +6°

Humidity: 97%

Wind: ENE - 17 KPH

Parga Weather
+7

High: +16° Low: +4°

Humidity: 100%

Wind: SE - 25 KPH

About Us

In Malaysia Corner, we’re here to bring back those days where you can still catch up with everyday news no matter which corner you are at.