PETALING JAYA: Axiata and Digi shares made rapid gains in mid-morning trade today after the Malaysian Communications and Multimedia Commission (MCMC) announced it has approved the proposed merger between Digi.Com Bhd (Digi) and Celcom Axiata Bhd (Celcom).
At 11.40am, Digi jumped 15 sen, or 4.62%, to RM3.40 with 2.5 million shares traded.
Axiata rallied 15 sen, or 5.34%, to RM2.96 with 1.8 million shares changing hands.
As Digi and Celcom are respectively Malaysia’s second- and third-largest mobile service operators to date, the merger will result in the formation of the country’s largest mobile service operator, MCMC said in a statement today.
“We (MCMC) conducted a thorough assessment on the merger,” it said.
On April 8, 2021, Axiata and Norway’s Telenor Group announced that they were discussing the proposed merger between Celcom and Digi to form a new entity and that it was expected to be completed in the second half of 2022.