OSLO, Norway-Telenor said it is looking to increase its shareholding in Malaysian mobile operator DiGi.Com. The Norwegian company currently has a 32.9-percent stake in DiGi.
Telenor informed the Malaysian operator’s board of directors of its intention to make a voluntary partial takeover offer for up to a maximum 210.5 million additional shares, increasing its total ownership in the carrier to 61 percent, which is the current maximum foreign ownership allowed by the Malaysian government.
Under the terms of the offer, Telenor will offer to all holders of the remaining 503 million DiGi shares a cash consideration of $1.74 per share for up to 210.5 million shares.
The partial tender offer is conditional on Telenor receiving tenders allowing it to hold at least 375 million plus one shares, representing more than 50 percent, at the completion of the offer. If Telenor holds 50 percent plus one share or up to 61 percent at the end of the offer, its investment will amount to US$222 million to US$365 million.
Telenor plans to maintain the public listing status of DiGi on the Kuala Lumpur Stock Exchange following the offer.
The partial offer was approved by the Securities Commission of Malaysia, but is subject to approvals from other Malaysian authorities and from DiGi’s shareholders.
DiGi, a GSM 1800 MHz carrier, had about 1 million subscribers at the end of March and is Malaysia’s third-largest operator.
