PETALING JAYA: Axiata Group Bhd and Digi.com Bhd’s parent company Telenor ASA have ended their four-month long discussions on a possible merger for the two telcos’ operations in Asia, due to some “complexities” involved in the proposed transaction.
However, both parties do not rule out the possibility of a future transaction.
“The board acknowledges the strong strategic rationale of the proposed transaction and is equally cognizant of the level of complexity of such a deal that extends across nine countries and 14 major entities,” said Axiata chairman Tan Sri Ghazzali Sheikh Abdul Khalid in a statement.
“Regardless of the expressed synergies of the merger, we are confident that the termination of the proposed transaction does not affect the group in achieving its digital champion ambitions.”
Axiata president and group CEO Tan Sri Jamaludin Ibrahim said all of the group’s operating companies are performing well and it is looking cautiously optimistic to meet its 2019 key performance indicators.
“Moving forward, we are transforming into a digital technology company in what can be described as an increasingly converged global industry, branching out beyond mobile and consumer to home broadband, enterprise, digital and TowerCo,” said Jamaludin.
“We are confident of reaping the benefits of our investments in new growth areas including enterprise, home, digital VAS, digital businesses and infrastructure in the next few years.”
He said the group continues to actively explore possible consolidation and portfolio optimisation opportunities to extract synergies, maximise efficiency and fund future growth areas.
The proposed transaction of non-cash combination of Axiata and Telenor’s telecom and infrastructure assets in Asia was first announced on May 6, 2019.
source https://www.thesundaily.my/business/axiata-telenor-call-off-merger-HY1346292
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