Ashurst represents Digi on Malaysias largest telecommunications merger in history
27 July 2021
Global law firm Ashurst advised Digi.Com Berhad ("Digi.com") in the US$12.1 billion merger of Digi.com and Celcom Axiata Berhad ("Celcom"). The merged company will become Malaysia's largest telecommunications company.
Axiata Group Berhad ("Axiata"), the seller, will transfer its stake in Celcom to Digi.com for RM17.8 billion. Axiata will receive new shares and RM1.7 billion in cash from Digi Telecommunications Sdn Bhd, and close to RM300 million from Telenor Asia, Digi's largest shareholder. The merged entity will have a pre-synergy equity valuation of close to RM50 billion (approximately US$12.1 billion).
The merger is the largest telecommunications deal ever in Malaysia. The merged company will provide better network quality and coverage and have greater scale to invest, drive 5G solutions and help catalyse new growth opportunities for large enterprises and SMEs. It will also leverage on combined economies of scale, while creating benefits through strengthening core distribution, delivering improved network operations, and realising efficiencies from operational activities.
Lead partner Chin Yeoh commented: "We are delighted to have acted as English law counsel to Digi.com in respect of its English law governed merger with Celcom. This landmark transaction, being the largest telecommunications deal ever in Malaysia, demonstrates the strength of our regional digital economy and telecommunications practices."
The Ashurst team was led by partner Chin Yeoh and supported by partners Ronnie King, Tom Connor and Myfanwy Wood.
