KUALA LUMPUR, June 15 — Axiata Group Bhd is confident that the definitive agreement on the proposed merger between Celcom Axiata Bhd and Digi.com Bhd will be signed by the end of this month.
President and group chief executive officer Datuk Izzaddin Idris said both Axiata and Norwegian Telenor Group have completed the due diligence that was required by both sides.
“We are in the midst of finalising the definitive agreement and we hope to be able to sign the agreement shortly. That could be in a matter of days or a week depending on the resolution of some issues.
“During the announcement we made on April 8, we said that the merger talk would be concluded by the end of the second quarter this year, so we still have about 15 days to deliver the result,” he said at a virtual press conference after Axiata’s 29th annual general meeting (AGM) today.
He said Axiata would make a submission to the Malaysian Communications and Multimedia Commission (MCMC) for the regulator’s approval immediately after the definitive agreement is signed.
“We have laid the foundation and done the groundwork with MCMC to understand their concerns or issues. Also, we have appointed the consultant to help prepare the economic study in terms of what would constitute market share and if market share will be affected with the merger,” he said.
Izzadin said during the AGM, shareholders were positive and hopeful about the proposed merger in terms of quality of service and what it would bring to the customer.
He said Axiata also iterated its commitment on championing digital inclusion and would continue to invest in advanced technologies and network infrastructure in enhancing the experience of customers and communities as well as supporting the government’s effort at the AGM.
“Guided by our Axiata 5.0 Vision to enhance resilience and advance towards our ambition of becoming The Next Generation Digital Champion by 2024, our internal constructs are elevated to facilitate greater agility as well as heighten scale and group synergy.
“Our triple-core business strategies of digital telcos, digital businesses and infrastructure are actively pivoting to support the group’s value creation efforts which include paying higher dividends,” he said.
Meanwhile, Axiata chairman Tan Sri Ghazzali Sheikh Abdul Khalid said its priorities would be focused on guiding the group towards ensuring financial and operational resilience as well as sustainable and equitable growth.
“In furthering our commitment as a socially responsible organisation, the board is heartened that Axiata will accelerate its climate action journey by embarking on the development of its Net-Zero Carbon Roadmap. Our sustained efforts in this space have resulted in Axiata’s MSCI ESG Rating of ‘A’.
“In line with the robust performance in 2020, Axiata paid a full-year total dividend of seven sen per ordinary share, which includes an interim dividend of two sen per ordinary share declared for the financial period ended 30 June 2020,” he added. — Bernama
