KUALA LUMPUR – The share prices of Axiata Group Bhd and Digi.Com Bhd rose 2.08% and 1.01%, respectively, this morning, following the definitive agreements inked yesterday to combine their Malaysian mobile operations in what is the country’s biggest telecommunications transaction.
At 9.51am, Digi increased 9 sen to RM4.41, with 1.1 million shares changing hands, while Axiata was up 4 sen at RM4.02, with 402,100 units transacted.
Both stocks are among the top three biggest gainers of the 30-index constituents on Bursa Malaysia this morning.
The merger between Celcom Axiata Bhd and Digi, referred to as MergeCo, will serve an estimated 19 million customers with a revenue of RM12.4 billion.
Axiata and Telenor, Digi’s parent company, will be equal partners, each having a 33.1% stake in MergeCo, which will continue to be listed on Bursa.
Targeted to be among the five largest companies listed on Bursa Securities in terms of market capitalisation, MergeCo is valued at a combined pre-synergy equity value of close to RM50 billion, after taking into account the issuance of new shares in Digi. – Bernama, June 22, 2021
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