by BERNAMA / graphic by MZUKRI MOHAMAD

THE proposed merger between Celcom Axiata Bhd and DiGi.com Bhd to form a new entity known as MergeCo is expected to be completed in the second half of 2022 (2H22), said Axiata Group Bhd.

In a stock exchange filing to Bursa Malaysia yesterday, Axiata said the completion of the transaction will be subject to the approval of the shareholders of both the company and DiGi, as well as regulatory approvals and other terms and conditions.

Read more: Delay in Celcom-Digi merger not good for industry, analysts say

Axiata and Telenor Group had previously announced on April 8, 2021, that they were in advanced discussions to undertake a merger of the telco operations of Celcom and DiGi.

On Nov 24, 2021, Axiata also announced that MergeCo had initiated engagement with the Malaysian Communications and Multimedia Commission for the merger assessment process in relation to the proposed merger.

“Our board also announced that Axiata has been informed by DiGi that an application to the Securities Commission of Malaysia to seek its approval for the proposed merger has been submitted by Digi on Jan 28, 2022,” it said.

Read more: Celcom, Digi asked to address preliminary competition concerns in ongoing merger assessment