Digi, Axiata shares up after signing proposed merger agreements

At 9.51am, Digi increased nine sen to RM4.41 with 1.1 million shares changing hands while Axiata was up four sen at RM4.02 with 402,100 shares transacted. — Bernama pic
At 9.51am, Digi increased nine sen to RM4.41 with 1.1 million shares changing hands while Axiata was up four sen at RM4.02 with 402,100 shares transacted. — Bernama pic

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KUALA LUMPUR, June 22 ― The share prices of Axiata Group Bhd and Digi.Com Bhd rose 2.08 per cent and 1.01 per cent respectively this morning following the definitive agreements inked yesterday to combine their Malaysian mobile operations in what is the biggest telecommunication transaction in the country.

At 9.51am, Digi increased nine sen to RM4.41 with 1.1 million shares changing hands while Axiata was up four sen at RM4.02 with 402,100 shares transacted.

Both stocks were among the top three biggest gainers in the 30-index constituents on Bursa Malaysia this morning.

The merger of Celcom Axiata Bhd and Digi, referred to as MergeCo, would serve an estimated 19 million customers with a revenue of RM12.4 billion.

Axiata Group and Digi's parent company Telenor would be equal partners, each having a 33.1 per cent stake in MergeCo which would continue to be listed on Bursa Malaysia Securities Bhd.

Targeted to be among the five largest companies listed on the Bursa Securities in terms of market capitalisation, MergeCo is valued at a combined pre-synergy equity value of close to RM50 billion, after taking into account the issuance of new shares in Digi. ― Bernama

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