• Tuesday, Aug 03, 2021
  • Last Update : 12:45 am

GP's clarification on merger

  • Published at 09:58 pm May 7th, 2019
web-grameenphone

Telenor Group’s Asian operations which includes Grameenphone, will be a part of the possible merger between Telenor Group and Axiata Group Berhad

In a clarification sent by Grameenphone on Tuesday, Telenor Group’s Asian operations which includes Grameenphone will be a part of the possible merger between Telenor Group and Axiata Group Berhad. 

Telenor Group and Axiata Group Berhad are in discussions regarding a potential non-cash combination of their telecom and infrastructure assets in Asia (MergeCo), in which Telenor would take a majority stake. 

It is anticipated that Telenor, based on equity value, will own 56.5% in MergeCo and Axiata will own 43.5%, both parties acknowledging that this is preliminary subject to adjustments and due diligence. 

“Telenor Group and Axiata Group Berhad are in discussions regarding a potential non-cash combination of their telecom and infrastructure assets in Asia (MergeCo), in which Telenor would take a majority stake,” Telenor said in a statement uploaded on its website yesterday.

There is no certainty that these discussions will result in any transaction agreement between the parties, the statement adds.

It is anticipated that Telenor, based on equity value, will own 56.5% in MergeCo and Axiata will own 43.5%, both parties acknowledging that this is at a preliminary stage and subject to adjustments and due diligence, it elaborates.

“Today (Monday) we announce that Telenor and Axiata are in discussions on joining forces in Asia, one of the most dynamic and innovative regions in the world. Together, we aim to create a leading and well-diversified pan-Asian telecom and infrastructure company with substantial synergy potential and strong regional operations,” says Gunn Wærsted, Chair of Telenor Group.

It is Telenor’s strategy to develop and create value from our core telco assets in the Nordic and Asian region. This potential merger is in line with that strategy, set by the Board and Management, says Gunn.

“By creating one of Asia’s leading telecom players; with strong regional operations in nine countries and close to 300 million customers, we will combine scale and competence, thereby unlocking considerable synergies,” says Sigve Brekke, president and chief executive officer of Telenor Group.

“I am confident this will create significant value for shareholders and will be beneficial to our customers,” he adds.

Telenor’s Asian footprint includes Thailand, Malaysia, Bangladesh, Pakistan and Myanmar. 

Axiata has operating companies in Malaysia, Bangladesh, Cambodia, Nepal, Sri Lanka and Indonesia, and the tower business edotco.  

Axiata’s mobile operations in Bangladesh, Robi, will continue to be separately and independently managed by Axiata. 

Citi is acting as financial advisor to Telenor Group on the proposed transaction.

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