Axiata Group Bhd and Digi.Com Bhd in a joint statement today welcomed the Malaysian Communications and Multimedia Commission (MCMC)’s decision to approve their proposed merger company. Lauding the potential of the merger in driving digitalisation in Malaysia, both companies also revealed that the new company name would be ‘Celcom Digi Bhd’.
As reported by Bernama, both parties also said that the merger will provide better network quality and coverage in our country. This is because the new entity will invest in network expansion to support the growing demand for data and digitalisation.
In order to keep Malaysia at the forefront of the global digital revolution, the merger company has also proposed to invest up to RM250 million over five years to build a world-class innovation centre in Kuala Lumpur. This centre will help advance extensive research and development leveraging 5G, artificial intelligence (AI) and Internet-of-Things (IoT) technology.
Celcom Digi Bhd will also be well-placed to drive 5G solutions as well as catalyse new growth opportunities for large enterprises and small and medium enterprises (SMEs). Both companies also claimed that the merger will be able to attract global digital giants in support of the JENDELA and MyDigital aspirations in our country.
While the proposed merger has been approved by MCMC, its completion is still subject to the approval from the Securities Commission, Bursa Malaysia Bhd, Axiata and Digi shareholders, and fulfilment of other customary terms and conditions. Should it be completed, Axiata (Celcom's parent company) and Telenor (Digi's parent company) will hold 33.1% ownership each and will list Celcom Digi Bhd on Bursa Malaysia.
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