In a filing with Bursa Malaysia, the telecommunications group said the dividend was declared following the successful completion of the Celcom-Digi merger on Nov 30.

“As part of the transaction, Axiata received a cash consideration of RM2.5 billion from Digi.Com Bhd and RM300 million from Telenor Asia Pte Ltd, in accordance with the terms of the share purchase agreement and master transaction agreement,” it said.

Axiata said the bulk of the cash proceeds from the merger exercise would be channelled towards strengthening its balance sheet by paring down its debts, and the special dividend to reward shareholders is from the remaining cash.

In advancing the group’s regional expansion strategy, Axiata said it will continue to focus on positioning the business to capture new opportunities as it champions digitalisation for communities across Asia.

Axiata posted a net loss of RM52.4 million in the third quarter ended Sept 30, 2022, on significant foreign exchange losses from the strengthening of the US dollar against local currencies of its operating companies and higher finance costs.