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The Silicon Review Asia

A New Market Leader Emerges With Axiata, Telenor Merger in Malaysia

A New Market Leader Emerges With Axiata, Telenor Merger in Malaysia

Telenor and Axiata Group have signed an agreement that will see the two companies merge its mobile units in Malaysia to form a new entity. The entity will be called MergeCo and it will serve an estimated 19 million customers with revenue of RM12.4 billion.

MergeCo is valued at approximately RM50 billion. Axiata and Telenor will be equal partners with 33.1% ownership stake each in MergeCo. In terms of market capitalization, MergeCo will be among the five largest companies listed on Bursa Malaysian Securities Berhad.

The new entity will combine the capabilities of Axiata and Telenor to deliver the best services to its customers. The company will be positioned well to address Malaysia’s increasing digital service adoption and expectations of better connectivity. MergeCo will also be in a great place from where it will fuel the implementation of digital technologies at a time when 5G, IoT, AI and cloud computing are coming together to accelerate digitalization across all reaches of society.

“With this merger we bring together competencies, financial strength and scale to go beyond connectivity and implement technology that further advances our customers digital experience,” says Jørgen A. Rostrup, Executive Vice President and Head of Asia in Telenor Group.

Over the next five years, MergeCo will make an investment of up to RM250 million to build a world-class Innovation Center, which will come up in Kuala Lumpur. This Innovation Center will conduct extensive research and development, develop 5G use cases, support local digital startups, and provide a platform to nurture the creation of a knowledge-based workforce in line with the MyDIGITAL aspirations.

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