[ad_1]
FILE PHOTO: The Telenor logo is seen in the center of Belgrade, Serbia, on March 21, 2018. REUTERS / Marko Djurica
OSLO / KUALA LUMPUR (Reuters) – Norwegian Telenor is in talks with Malaysia's Axiata group to create an Asian telecom company, which is jointly owned by nearly 300 million customers, the company said on Monday.
If an agreement is finalized, the merged operation that combines the activities of the two companies in South and South-East Asia will probably be 56.5% owned by the Norwegian mobile operator and 43.5% by Axiata. they declared.
The joint venture will operate in nine countries with a population of nearly one billion, including Thailand, Malaysia, Bangladesh, Pakistan, Myanmar, Sri Lanka and Indonesia.
"With its unique portfolio, MergedCo will be one of the largest telecommunications groups in the region in terms of value, revenue and profit, and with a strengthened balance sheet to support dynamic growth and expansion," said Axiata.
The companies hope to generate savings of about $ 5 billion by bringing the two companies together.
The company's pro forma annual revenues are estimated at $ 13 billion, with earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 5.5 billion before any savings are realized.
"Telenor and Axiata will use to finalize the agreements for the proposed transaction in the third quarter of 2019, following a due diligence," they said.
Report by Terje Solsvik in Oslo and Liz Lee in Kuala Lumpur; Edited by Sherry Jacob-Phillips and Sonali Paul
Source link
