Axiata Group Bhd announced that it is in further discussions with Telenor Asia to merge the operations of Celcom Axiata Bhd and Digi.Com Bhd.
Both parties will have an equivalent ownership value of approximately 33.1%.
According to Axiata through a notification to Bursa Malaysia, the company, together with local institutional funds, will have a stake of more than 51% in a joint venture company known as Celcom Digi Bhd.
Add the information, Datuk Mohd. Izzaddin Idris will be appointed as the chairman while Mohamad Idham Nawawi will hold the position of Chief Executive Officer (CEO).
In addition, the affiliated entity will continue to be listed on Bursa Malaysia.
In a similar development, Axiata and Telenor also agreed to create a world -class innovation center to be the catalyst for the digital transformation of the Fourth Industrial Revolution (Industry 4.0), 5G development and other technological advances.
Both parties will work to finalize the agreement in the second quarter of 2021.
Axiata shares jumped 2.7% or 10 sen in the 20 minutes before the trading session closed yesterday at RM3.80.
Shares of Digi.Com also showed an increase over the same period yesterday, rising 2% to RM3.75 from RM3.68.
