Digi and Celcom's proposed merger given the greenlight by Securites Commission Malaysia

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It looks like the Digi and Celcom merger is getting close to completion after the Securities Commission Malaysia’s (SC) approval of the proposed merger between the two local telco giants. This announcement comes after almost 2 months after the Malaysian Communications and Multimedia Commission (MCMC) also gave its approval for the merger. 

As reported by Bernama, SC approved the proposed merger under certain terms and conditions, including the transfer of Celcom’s entire issued share capital of 1.24 billion shares by Axiata to Digi for RM17.76 billion. Digi’s filing with Bursa Malaysia yesterday also showed that the company listed an additional 3.96 billion new shares on the Main Market.

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Furthermore, the enlarged issued shares allocated to Malaysians would increase to 59.9 per cent from 40.4 per cent as it was on 31 December 2021 after the proposed merger. Meanwhile, the allocation for foreigners will drop from 59.6 per cent to 40.1 per cent post-merger.

Of the 59.9 per cent of the enlarged issued for Malaysians, 47.4 per cent would be allocated to non-Bumiputera versus the 21.6 per cent before the merger, while the Bumiputera allocation would be 12.5 per cent, down from 18.8 per cent. Both telcos said the SC approved the Bumiputera equity structure in Digi following the proposed exercise.

In a statement yesterday, Digi said that “Axiata, the holding company of Celcom, is a non-Bumiputera body corporate. Non-Bumiputera direct interest in Digi post-merger is calculated based on the total number of shares held as at 31 December 2021 and the 3.88 billion fully paid-up new Digi shares to be issued to Axiata,”. On the foreigners’ direct interest post-merger, Digi said its holding company Telenor Asia Pte Ltd is a 100 per cent foreign-owned body corporate.

Foreigners’ direct interest in Digi post-merger is calculated based on the total shares in Digi as of the latest practicable date of 31 December 2021. Moreover, the filing also said that the 73.38 million fully paid-up new Digi shares will be issued to Telenor Asia post-merger.

So, what do you guys think of the imminent merger between Celcom and Digi? Share your thoughts with us in the comments below and stay tuned to TechNAave for more tech news in Malaysia and beyond!