Axiata described its plan with Telenor as a ‘merger of equals’, saying the process is based on the relative valuation of both their assets. — Reuters pic
“Despite Telenor having a majority stake, on matters of governance of the new MergedCo, the concept of merger of equals is fundamental to this proposed merger. Although Axiata does not own a majority stake in the MergedCo, we would own a significant share of a much larger group and value, as the value of our assets would increase due to the synergy benefits of the merger between RM15 billion to RM20 billion, of which our portion [works out to] RM7 billion to RM9 billion.
Axiata said the Celcom and Digi merger would be known as MalaysiaCo, adding that the national interest will hold the bigger stake of 46 per cent through direct and indirect shares with potential market capitalisation exceeding RM41 billion.Axiata also said the majority of MalaysiaCo board members and its chief executive officer will be Malaysians.