Merger Agreement Signed, Axiata & Digi Shares 'Rocket'! - - Financial Market Media No. 1 in the World Merger Agreement Signed, Axiata & Digi Shares 'Rocket'! Merger Agreement Signed, Axiata & Digi Shares 'Rocket'!

June 22, 2021

Merger Agreement Signed, Axiata & Digi Shares 'Rocket'!

 The share prices of Axiata Group Bhd and Digi.Com Bhd, rose 2.08% and 1.01% respectively this morning following a definitive agreement signed yesterday to combine their mobile operations in Malaysia in the country's largest telecommunications transaction.

At 9.51am, Digi rose nine sen to RM4.41 with 1.1 million shares changing hands while Axiata rose four sen to RM4.02 with 402,100 shares traded.

Bernama reported that the two stocks were among the three largest major gainers in the 30 constituents of the index on Bursa Malaysia this morning.

The merger of Celcom Axiata Bhd and Digi, referred to as a joint venture, will provide services to an estimated 19 million customers with revenue of RM12.4 billion.

Axiata Group and Digi's parent company, Telenor will be equivalent counterparties with each holding a 33.1% stake in the company which will continue to be listed on Bursa Malaysia Securities Bhd.

Targeted to be among the five largest companies listed on Bursa Malaysia in terms of market capitalization, the merger is valued at a joint prinnergy equity value of almost RM50 billion, after taking into account the issue of new ordinary shares in Digi.