The bottom line: Malaysia’s telecom landscape consolidated into a single heavyweight when Axiata and Norway’s Telenor completed the merger of Celcom and Digi’s mobile operations, creating Celcom Digi, a company each parent now owns 33.1% of. First proposed in April 2021, the combination became the biggest local technology listing on Bursa Malaysia.
By the numbers, the joint statement set out the scale plainly. “On a pro forma basis for the financial year 2021, Celcom Digi will serve an estimated 20 million customers, with revenues of RM13 billion, and earnings before interest, tax, depreciation and amortisation (Ebitda) of around RM5.8 billion. The company remains committed to the previous-announced synergy target of RM8 billion,” it read. Investors will note that RM8 billion figure: it is the synergy pot the merged operator has promised to chase.
The deal mechanics rewarded both sides in different currencies. Axiata received new Digi stock worth a 33.10% slice of the enlarged share capital, along with RM2.5 billion in cash that Digi funded and the merged entity will assume. To equalise, Telenor paid RM0.3 billion to Axiata and received additional Digi shares. Beyond the two parents, Malaysian institutions including the Employees Provident Fund, the Retirement Fund (Incorporated) and Permodalan Nasional Berhad are also on the register.
The chairmen talked national platform, not just market share. Axiata chairman Tan Sri Shahril Ridza Ridzuan said: “On behalf of the Board of Axiata, I wish to congratulate the Celcom Digi team on this new beginning.” In his fuller statement he added: “Celcom Digi is strategically poised to invest in network expansion and support the growth of Malaysia’s digital ecosystem.” He also pointed to the role the tech giant could play in talent development as the country pushes into 5G, automation, the internet of things, AI and cyber resilience.
Telenor framed the finish line in its own register. Jorgen C. Arentz Rostrup, the group’s executive vice president and head of Asia, said: “Connecting people to what matters most will always be Telenor’s foundation for growth in Asia.” He called the launch significant: “The launch of Celcom Digi represents a major milestone in Malaysia’s digitalization journey, aligned with Telenor’s ambition to build leading operators that serve customers with relevant, attractive, and convenient products and services.” By combining two well-loved local brands, he said, the company can serve both consumers and the growing needs of Malaysian SMEs and large enterprises, with development opportunities for employees.
The commitments that matter for the wider economy are concrete. Celcom Digi plans to invest up to RM250 million, spread over five years, to build a Kuala Lumpur innovation center of world-class standard, aimed at 4IR transformation through IoT, AI, cloud computing and 5G, with bridging the rural digital divide a stated priority. The demand case looks solid: in Telenor’s Digital Lives Decoded survey, three in four Malaysians expected their mobile usage to rise, and nearly two-thirds, or 63%, called mobile connectivity “very important” to their organizations’ success.
The market’s verdict on completion day was positive. Axiata finished at RM3.25, up 16 sen or 5.18%, for a market capitalisation of RM29.83 billion, while Digi.com ended at RM4, up 12 sen or 3.09%, valuing the group at RM31.1 billion.
Sources
- Axiata, Telenor announce completion of Celcom-Digi merger
- Axiata and Telenor Successfully Complete Celcom and Digi Merger – Telecom Review Asia
