JAKARTA, Indonesia-In response to the government’s call to consolidate the telecommunications industry, Telekom Malaysia increased its shareholding in Celcom from 31.2 percent to 47.9 percent.
The total purchase consideration of US$443 million will be fulfilled by the issuance of 635,471,698 new Celcom shares at US$0.697 per share.
Dato’ Dr. Md. Khir Abdul Rahman, chief executive of Telekom Malaysia Berhad, said: “Today’s signing will clear the path toward the full merger of Celcom and TM Cellular, thus fulfilling Telekom’s objective of creating the premier cellular mobile telecommunications services provider in Malaysia.”
Upon completion of the transaction, the enlarged Celcom Group will see a combined subscriber base of more than 3 million customers, representing a market share of approximately 40 percent.
Furthermore, he added the transaction will open opportunity to increase cost saving from sharing infrastructure and operational support services, as well as reduced capital expenditures.
