Axiata Group Bhd and Telenor Asia, the major shareholder of Digi.com Bhd, are proposing to merge Celcom Axiata Bhd and Digi to become a company, known as Celcom Digi Bhd (MergeCo).

Axiata, together with Malaysian institutional funds, will own over 51 percent of the company.

In a statement today, Axiata said as part of the merger transaction, the company would receive newly issued shares in Digi, representing 33.1 percent post-transaction shareholding and cash equalisation amount of around RM2 billion, of which RM1.7 billion would come from Digi as new debt while the...