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By Lian Cheng
KUCHING, Sept 6: The talk between DiGi.Com Bhd’s largest shareholder, Norway-based Telenor Group and Axiata Group Bhd to merge their Asian operations, has been called off.
According to a reliable source from Digi, the merger plan did not work out after months of negotiations and discussions.
Digi and Celcom, a member of Axiata group of companies, were in discussions to a non-cash combination of their telecom and infrastructure assets in Asia through a new merged entity.
“In a statement to the Oslo Stock Exchange, Telenor announced that they have mutually agreed to end discussions on the Proposed Transaction with Axiata.
“The Board of Directors of Digi (Board) was informed today by Telenor ASA (Telenor), the parent company of Digi’s largest shareholder, Telenor Asia Pte Ltd, that Telenor and Axiata Group Bhd (Axiata) have agreed to end discussions on the proposed transaction,” said the source.
The source pointed out that the board has been informed that over the last four months, both parties have been working on due diligence and finalising transaction agreements to be completed within the third quarter of 2019.
“Due to some complexities involved in the proposed transaction, the parties have mutually agreed to end the discussions. Both parties still acknowledge the strong strategic rationale of the proposed transaction.
“The parties do not rule out that a future transaction could be possible,” said the source. — DayakDaily