PETALING JAYA (Sept 17): The termination of Telenor ASA and Axiata Group Bhd’s proposed merger will not derail Digi Telecommunications Sdn Bhd’s efforts at collaborating with its ecosystem, especially in the area of 5G.
Digi chairman Håkon Bruaset Kjøl said while the company continued to believe in the strategic rationale behind the proposed merger, the two telecommunication giants were unable to conclude discussions.
“Having said that, this does not stop Digi’s efforts at working with our ecosystem and the industry, so that we can address the challenges and opportunities in 5G.
“There are a lot of things that go in the ecosystem and which can benefit Malaysia. Pertaining to the discussions on the merger, we have said what needed to be said,” he told reporters on the sidelines of the “Small Business, Big Impact: Sustainability as a Key Business Driver” forum here today.
To recap, Axiata Group had on May 6 said in a filing with Bursa Malaysia that the two entities were set to create a new global champion by combining their Asian operations under a new merged global entity (MergedCo).
It said both parties would work towards finalising an agreement within the third quarter this year.
However, the companies’ released a statement on Sept 6 to announce that they had mutually agreed to end discussions on the proposed merger after performing their due diligence, citing “complexities” as the reason.
Meanwhile, on Sept 12, Celcom Axiata Bhd chief executive officer Idham Nawawi said it was business as usual for the company, despite the failed merger between parent company Axiata and Telenor.
"We, in Celcom, were always focusing on business as usual, even during the talks and negotiations for the merger.
“We always focus on the market, on the roll-out, getting more customers and bringing more revenue," he added.