DiGi hits over 16-month high on telco merger talks

Digj and Celcom have now merged under one umbrella.

KUALA LUMPUR: Shares of DiGi rise as much as 11.5% after 49% shareholder Telenor ASA explores jointly owned telecoms giant with Axiata Group in South and Southeast Asia.

Stock of telecoms group hits its highest since Dec 29, 2017, its largest intraday gain since Oct 2010.

Mobile operator Telenor said on Monday it was in talks with Axiata to jointly run one of the largest telecommunications groups in the region in terms of value, revenue and profit, with nearly 300 million customers.

The two have overlapping businesses in Malaysia, where they will merge their respective units, Celcom and Digi.

A source said the merged group would be worth US$40 bln including debt, making it the largest cross-border merger in Asia, ex-China and Japan.