OSLO-Newly merged Telenor and Telia agreed to acquire a 30-percent stake in DiGi Swisscom Berhad, a Malaysian telecommunications group that operates a Global System for Mobile communications 1800 MHz network, said Telenor. The investment is valued at approximately $207 million.
Under terms of the agreement, Telenor will purchase 30 percent of the existing shares of DiGi from Vincent Tan; those shares had been previously owned by Swisscom of Switzerland, said Telenor. Following the transaction, Vincent Tan will hold 31 percent of DiGi, Telenor/Telia 30 percent and others 39 percent. DiGi currently has more than 500,000 subscribers and is the third-largest wireless operator in Malaysia.
“This investment represents a significant step towards fulfilling our strategy in Asia,” said Knut Reed, Telenor’s regional director for Asia, in a company statement. “Our company has actively embarked on an Asian strategy earlier this year, recognizing the significant growth potential of the region’s telecommunications market combined with the increased attractiveness of opportunities resulting from recent structural changes to the region’s economies.”
Arve Johansen, senior executive vice president and CEO of Telenor/Telia, told the Financial Times that the the combined company also plans a possible increase in its 10-percent stake in Germany’s Viag Interkom and has set its sights on Southeast Asia, South Africa and South America.
