Telenor ASA

04/08/2021 | Press release | Distributed by Public on 04/07/2021 23:00

Telenor and Axiata in discussions to merge Malaysian operations

Telenor Group and Axiata Group Berhad are in advanced discussions regarding a potential merger between its mobile operations, Celcom and Digi, in Malaysia. Both parties will have an equal ownership of 33.1% in the combined entity. As part of the transaction, Axiata will receive newly issued shares in Digi, a cash consideration from new debt in the merged company of approximately USD 400 million (around NOK 3.4 billion) and approximately USD 70 million (around NOK 600 million) from Telenor Group. The parties aim to create the leading telecommunication operator in Malaysia. A transaction will realise synergies and provide value for shareholders in line with our strategy of further developing Telenor's Asian portfolio. Axiata and Telenor will work towards finalising agreements in relation to the proposed transaction within the second quarter of 2021 following due diligence. The parties acknowledge that there is no certainty that the discussions will result in a final agreement. The transaction will be subject to approval by Celcom and Digi shareholders, receipt of regulatory and other customary approvals. Pro-forma revenue of the combined entity is approximately USD 3.0 billion (around NOK 25.5 billion), EBITDA of around USD 1.4 billion (around NOK 11.7 billion) and with a total mobile subscriber base of approximately 19 million customers. Analyst call at 09:00 CEST today Telenor's Chief Financial Officer Tone Hegland Bachke will host a conference call for analysts and relevant media at 09:00 CEST today. To participate in the conference call, please register 15 minutes before the conference starts by click to join: https://events.globalmeet.com/Public/ClickToJoin/ZW5jPTRoQUZ2aDY4TXVsRUpBOG1STy8yM05zaHl1NW5jVGVodEtGUTJ0WFZJNjVDRnNzWmVFckhDdz09 Prefer to dial in? +47 2100 2610 (local Norway) +44 (0) 330 336 9105 (local UK) +60 (0)3 7724 0453 (local Malaysia) +65 6320 9025 (local Singapore) +1 929 477 0324 (local US) Please state confirmation code 3008393, your name and company to the operator. For the Q&A session: to queue up for questions please press *1 A recording and a transcript of the call will also be made available on telenor.com/investors. Investor Relations Contacts: Øystein Myrvold, mobile: (+47) 992 30 460, [email protected] Håkon Hatlevik, mobile (+47) 901 46 070, [email protected] Kristine Devold, mobile (+47) 900 50 780, [email protected]