OSLO, NORWAY: Telenor, Axiata and Digi have accomplished the merger of the telecommunication operations of Celcom Axiata and Digi.
The new firm will be named Celcom Digi and can proceed its Digi itemizing on Bursa Malaysia. The closing of the transaction represents one other step within the execution of the mid-term technique presented on the Telenor Group capital markets day in September.
On completion, Axiata received newly issued Digi shares representing 33.10 percent of the enlarged share capital of Digi, and a money consideration of MYR 2.5 billion funded by Digi and to be assumed by the merged entity. Digi additionally issued shares to Telenor to attain equal possession following Telenor’s payment of MYR 0.3 billion to Axiata.
Celcom Digi would be the largest listed technology firm on Bursa Malaysia. On a professional forma foundation for the monetary year 2021, Celcom Digi will serve an estimated 20 million customers with an EBITDA of round MYR 5.8 billion (around NOK 12.8 billion). The firm stay dedicated to the beforehand introduced synergy goal with net current worth of MYR eight billion (around NOK 18 billion).
Digi will be deconsolidated and accounted for as an related firm in Telenor ASA books as of November 30 and all historic accounts will be re-presented, presenting Digi as discontinued operation. The new associate, Celcom Digi will be recognised based on the market worth on 1 December 2022 and accounted for under the fairness method going forward. Based on book values of Digi as of 30 September 2022 and market worth of Digi as of 30 November 2022, Telenor estimate a gain of round NOK 30 billion to be recognised in Q4 2022. All issues being equal, deconsolidating Digi will increase Telenor Group’s net debt to EBITDA ratio by round 0.1x.