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)

Axiata, Telenor in merger talks to create telecoms giant

By The Associated Press May 6, 2019 at 2:33am

KUALA LUMPUR, Malaysia (AP) — 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.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Submit a Correction →

We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:

WJ Wire

The Associated Press

SummaryMore Biographical InformationRecent PostsContact

The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands. Photo credit: @AP on Twitter

@AP

Facebook

The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.

Location

New York City