TELNF - Axiata Telenor merging Malaysian wireless ops in $15B deal

Axiata Group (AXXTF) and Telenor (TELNY +0.7%) are combining their mobile operations in Malaysia in a $15B deal. That follows earlier discussions to combine their Celcom Axiata and DiGi.com, the country's No. 2 and No. 3 providers, into Celcom Digi Berhad, a new market leader. Each party will own 33.1% of the combined firm, estimated to have annual revenue of $3B with core profitability of $1.4B and a subscriber base of about 19M. The companies say the merged entity has a "pre-synergy" equity value of almost 50B ringgit (about $12.1B); the implied $15B enterprise value is based on Digi's Friday share price of 4.18 ringgit.

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Axiata, Telenor merging Malaysian wireless ops in $15B deal