Axiata Group (parent company of Celcom) and Telenor Asia (parent company of Digi) announced that both companies have successfully inked agreements for the proposed merger of Celcom and Digi.
Celcom and Digi are both leading telecommunication providers in Malaysia with a 20% and 24% market share respectively in 2020.
The merger, also known as MergeCo, aims to establish a stronger and more resilient “digital converged service provider”.
Axiata and Telenor will each hold equal stakes of 33.1% respectively in MergeCo, which will continue to be listed on Malaysia’s stock market.
The merger will aim to invest up to approximately US$62.5 million (RM250 million) over 5 years in building an Innovation Centre in in Kuala Lumpur, the capital of Malaysia.