KUALA LUMPUR – The share prices of Axiata Group Bhd and Digi.Com Bhd rose 2.08% and 1.01% respectively this morning following the definitive agreements inked yesterday to combine their Malaysian mobile operations in what is the biggest telecommunication transaction in the country, reported Bernama.
At 9:51 A.M., Digi increased nine cents to RM4.41 with 1.1 million shares changing hands while Axiata was up four cents at RM4.02 with 402,100 shares transacted.
Both stocks were among the top biggest gainers in the 30-index constituents on Bursa Malaysia this morning.
The merger of Celcom Axiata Bhd and Digi, referred to as MergeCo, would serve and estimated 19 million customers with a revenue of RM12.4 billion.
Axiata Group and Digi’s parent company, Telenor, would be equal partners, each having a 33.1% stake in MergeCo which would continue to be listed on Bursa Malaysia Securities Bhd.
Targeted to be among the five largest companies listed on the Bursa Securities in terms of market capitalisation, MergeCo is valued at a combined pre-synergy equity value of close to RM50 billion, after taking into account the issuance of new shares in Digi.
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