OSLO (Reuters) -Malaysian telecoms firm Axiata Group Bhd and Norway’s Telenor ASA have agreed to merge their mobile operations in Malaysia, forming a new market leader in the southeast Asian nation, the two firms said on Monday.
The planned transaction, which remains subject to regulatory and other approvals, is expected to be completed by the second quarter of 2022, the firms said.
Telenor and Axiata will each own 33.1% of the merged firm, which will remain listed in Kuala Lumpur. As part of the deal, Axiata will also receive $470 million in cash, in line with a preliminary agreement announced in April.
As a result of the deal, the companies plan cost cuts and savings on capital expenditure with a net present value amounting to some $2 billion, Telenor said in a statement.
(Reporting by Terje Solsvik; Editing by Christopher Cushing)
