Telenor and Axiata consider merging Asian operations

Telenor Group and Axiata Group Berhad are discussing a potential non-cash merger of their telecom and infrastructure assets in Asia (MergeCo), in which Telenor would take a 56.5% stake and and Axiata a 43.5% stake. The parties described the talks as preliminary.

If completed, MergeCo would have close to 300 million customers and become one of Asia’s largest mobile infrastructure companies operating approximately 60,000 towers across Asia. It is anticipated that the operational headquarters would be in Kuala Lumpur with the majority of functions. The company is planned to be listed at an international stock exchange as well as on Bursa Malaysia. In Malaysia, the intention is to merge Celcom and Digi, with MergeCo as the majority owner in the combined business.

Telenor’s Asian operations include:

• dtac, Thailand, 21.202 million mobile subscriptions (2018)
• DiGi, Malaysia, 11.660 million mobile subscriptions (2018)
• Telenor Pakistan, 43.530 million mobile subscriptions (2018)
• Telenor Myanmar, 17.232 million mobile subscriptions (2018)
• Grameenphone, Bangladesh, 72.732 million mobile subscriptions (2018)

Axiata’s operations include:

• Malaysia brands are celcom, e.co (infrastructure), Boost (financial services), ada (digital advertising), and apigate (digital platform)
• Singapore brand is ada
• Indonesia brands are ada, Boost, XL Axiata
• Cambodia brands are Smart, e.co
• Thailand brand is ada
• Myanmar brand is e.co
• Bangladesh brand is robi, e.co, and ada
• Nepal brand is Ncel
• Pakistan brand is e.co
• India brand is ada and apigate
• Sri Lanka brand are Dialog and e.co

“By creating one of Asia’s leading telecom players; with strong regional operations in nine countries and close to 300 million customers, we will combine scale and competence, thereby unlocking considerable synergies. I am confident this will create significant value for shareholders and will be beneficial to our customers,” said Sigve Brekke, President and Chief Executive Officer of Telenor Group.