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Axiata, Telenor merge Asian operations, eye Bt386 bn-plus revenue

Axiata, Telenor merge Asian operations, eye Bt386 bn-plus revenue

MONDAY, May 06, 2019

THE proposed merger of Malaysia’s Axiata Group Bhd and Telenor ASA’s Asian operations in the Asean region and South Asia will create a global champion with proforma revenue of more than 50 billion ringgit (Bt386 billion).

Axiata said in a statement yesterday the new merged entity’s (MergedCo) earnings before interest, taxes, depreciation and amortisation (Ebitda) would be more than 20 billion ringgit. Telenor Group has a 49 per cent stake in
The new entity will control operations of subsidiaries in nine countries with a combined total population of more than one billion people and 300 million customers. 
“With its unique portfolio, the MergedCo will be one of the largest telecommunications groups in the region in terms of value, revenue and profit, and with a strengthened balance sheet to support aggressive growth and expansion in the consumer, home, enterprise and IoT/artificial intelligence (AI) market segments,” Axiata said. 
Additionally, the portfolio of controlled telecommunication operations shall comprise six countries with number one positions, two countries with number two positions and one market with third position within their respective markets.
Telenor holds an indirect position in DTAC Thailand, the country’s third-largest mobile operator, and has over 21 million mobile subscribers. 
Separately, Robi Axiata Ltd, a subsidiary of Axiata operating in Bangladesh, shall continue to be managed independently by Axiata after completion of this proposed transaction. 
Axiata said in bringing together assets from both parties, the proposed transaction has the potential to deliver up to around 20 billion ringgit of incremental value in synergies through consolidation of assets and organisations, economies of scale and scope, and complementary best practices of the parties.
“The proposed transaction aims to enable the MergedCo to bring together Axiata and Telenor’s Asian operations’ unique combination of scale, competencies and vast experiences in leading and managing emerging and frontier markets. 
“The parties have also stated their stipulated intention to list the MergedCo on Bursa Malaysia [Malaysia’s stock exchange] and another major international exchange within the next few years. 
“As a global champion, the MergedCo will now include a Malaysian champion, a global towerco, and the largest innovation centre in this region, all to be headquartered in Malaysia,” it said.