KUALA LUMPUR: Axiata Group Bhd and Digi.Com Bhd have received green light from the Malaysian Communications and Multimedia Commission (MCMC) to proceed with the proposed merger of their telco operations.
The merger application for Celcom and Digi was submitted to MCMC in July 2021.
In a joint statement today, Axiata and Digi said the approval followed a substantive assessment of the proposed merger application, and due consideration of their response to MCMC's statement of issues (SOI) released earlier in April.
With the aporoval, the companies will advance to the next phase of the merger.
Axiata chairman Tan Sri Shahril Ridza Ridzuan said the merger was aimed at combining the best of Celcom and Digi so that customers and community have good options in accessing solutions to participate more equitably in the digital era.
"As two companies with a strong track record in contributing towards nation-building, we are also excited about the digital inclusion and growth opportunities that MergeCo and the proposed Innovation Centre will catalyse" he said.
Digi chair of the board of directors Haakon Bruaset Kjoel said today's announcement brought both parties a step closer to creating a strong Malaysian company with the combined scale, experience, network, and innovation leadership to drive Malaysia's digital growth in the coming years.
"Together, Celcom and Digi will bring better innovations to meet our customers' growing digital needs and for all participating in the digital economy to capture new growth opportunities in a fast-changing world.
"We will now focus on completing the remaining necessary steps to conclude this transaction and work on delivering a seamless integration programme to bring the vision and value of the merged entity to reality for the benefit of many," he said.
The merger will now be subject to the approval of the Securities Commission, Bursa Malaysia, Axiata and Digi shareholders and other customary terms and conditions.
The parties estimate to complete the proposed merger within the second half of 2022 as announced previously.
At completion, Axiata and Telenor will hold equal ownership of 33.1 per cent each in the new merged company, which will be named Celcom Digi Bhd and will continue to be listed on Bursa Malaysia.