Axiata and Telenor end discussions | Daily News


Axiata and Telenor end discussions

On proposed transaction

Axiata Group Berhad (‘Axiata’ or ‘the Group’) and Telenor ASA (‘Telenor’) (together ‘Parties’) have mutually agreed to end discussions regarding a non-cash combination of their telecom and infrastructure assets in Asia (the ‘Proposed Transaction’).

Over the last four months, both parties have been working on due diligence and finalising transaction agreements to be completed within the third quarter of 2019. Due to some complexities involved in the Proposed Transaction, the parties have mutually agreed to end the discussions. Both parties still acknowledge the strong strategic rationale of the Proposed Transaction. The parties do not rule out that a future transaction could be possible.

The parties do not intend to provide further comments.

The termination of the proposed transaction will not in any way affect the Group in its ability to achieve its Digital Champion aspirations by 2022. Operating from a position of strength, Axiata is confident in its capacity to leverage opportunities across the Consumer, Home, Enterprise/IoT, Digital and TowerCo businesses as the industry globally moves towards convergence.

As evident in the Group’s YTD 2019 results, Axiata’s ‘shifting gear’ focus towards profitable growth and cash generation continues to demonstrate excellent momentum and growing confidence in the Group’s PATAMI outlook.

Five out of six Operating Companies (OpCos) delivered highest profit growth in their respective markets, which saw XL and Robi returned to profit. Celcom stabilised with improvements in PATAMI and EBITDA margin as result of its focus on network as well as sales & marketing efficiency.

Digital Businesses is well on its way to a path of profitability with ADA expected to be profitable in FY2019. edotco registered double-digit revenue and EBITDA growth.

The Group also announced it is likely to exceed its 2019 headline KPIs for EBITDA growth and ROIC with ongoing Capex Efficiency programme likely to deliver capex below guidance of RM6.8 billion for FY2019.

Axiata has made a major strategic shift towards Operational Excellence which will result in increased focus on profit and cash while future-proofing the Group with prudent investments in new growth areas of Enterprise, Home and Digital VAS.

This will ensure its resilience in navigating an increasingly competitive business environment.

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