Celcom And Digi Are Officially Merging
We are one step closer to ending the “Maxis or Celcom”, “Digi or U Mobile” debate because telco giants Celcom and Digi are officially forming a merger between both companies.
Although both companies previously announced their plan to merge a couple of years ago, the plan was called off several months later. That is until the news was confirmed yesterday by Axiata Group Bhd president and group CEO Datuk Izzaddin Idris.
While Celcom was previously already a member of the Axiata Group, Digi will soon follow suit and under the new joint venture, the merged entities will be named Celcom Digi Bhd.
According to Izzaddin, the new merger will see Axiata receiving 33.1% of new shares in Digi that’s worth about RM2 billion, in which RM1.7 billion is to come from Digi as new debt, while the remaining RM300 million will be from Telenor, Digi’s largest shareholder.
“There will be no clear market leader in this merger, we will be equal shareholders, and not one entity overpowering the other. This will ensure that a healthy market competition remains,” said Izzaddin.