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Axiata Group and Shares Surge on News of Potential Celcom-Digi Merger

04/08/2021 | 10:01pm

By Yi Wei Wong

Shares of Malaysian telecom operators Axiata Group Bhd. and Bhd. rallied in early Friday trade on news of a potential merger of Celcom and Digi.

Axiata Group said Thursday that it is in advanced talks with Telenor ASA to merge their Malaysian operations, which could form the largest local mobile operator in terms of subscribers.

Shares of rose 10% to MYR4.13, while Axiata Group's shares jumped 7.9% to MYR4.10.

The deal would result in Telenor and Axiata having equal ownership of 33.1% each, and the merged company will be named Celcom Digi Bhd.

The potential merger could lead to healthier market rivalry among peers and is positive for the sector overall, Hong Leong Investment Bank said. could be the direct beneficiary from a successful merger, while Axiata Group may not be able to monetize on the merger immediately, the investment bank added.

Write to Yi Wei Wong at

(END) Dow Jones Newswires

04-08-21 2200ET

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