TELNY Telenor ASA (QX)

By Yi Wei Wong

Shares of Axiata Group Bhd. and DiGi.com Bhd. rise in early trade after the Malaysian Communications and Multimedia Commission issued a notice of no objection to the proposed merger between DiGi.com and Axiata Group's mobile operations.

Digi.Com's shares are currently up 4.3% at 3.39 Malaysian ringgit ($0.77), while Axiata Group adds 3.9% to MYR2.92.

In a joint statement on Wednesday, both telecommunications companies say the approval "paves the way for parties to advance to the next phase of regulatory and shareholder approvals."

The merger was first announced in June 2021, when Norwegian telecommunications provider Telenor ASA and Malaysian telecommunications operator Axiata Group said they had signed an agreement for a merger of their Malaysian mobile operations, Axiata's Celcom Axiata Bhd. and Telenor's DiGi.com, in a deal that could form the Southeast Asian country's largest mobile operator.

According to the terms of the merger, both Axiata and Telenor will be equal partners with a 33.1% ownership stake in the merged company, which will be then named Celcom Digi Berhad and will continue to be listed on Malaysia's bourse.

The completion of the proposed transaction will now be subject to the approval of Malaysia's Securities Commission, Bursa Malaysia and shareholders of both companies, the joint release says.

Both companies estimate the merger will be completed in the second half of 2022.

Write to Yi Wei Wong at yiwei.wong@wsj.com

(END) Dow Jones Newswires

June 28, 2022 23:59 ET (03:59 GMT)

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