The merger is expected to complete within the second half of the year
For it to materialise, the proposed merger will now be subject to the approval from the Securities Commission (SC), Bursa Malaysia Bhd, and Axiata and Digi shareholders, reported Bernama.
The companies also need to meet the fulfilment of other customary terms and conditions.
"Upon completion, Axiata and Telenor (Digi's largest shareholder) will hold equal ownership of 33.1% each in the newly merged company, which will be named Celcom Digi Bhd, and will continue to be listed on Bursa Malaysia," they said in a statement.
Once the merger is completed, MergeCo will be the name of their new entity
Digi and Celcom said they will provide better network quality and coverage as they will be primed to invest in network expansion to support the growing demand for data and digitalisation, reported The Edge Markets.
The joining of the two companies will better position MergeCo to drive 5G solutions, catalyse new growth opportunities for large enterprises and small and medium enterprises (SMEs), and attract and partner with global digital giants in support of the Jalinan Digital Negara (JENDELA) and MyDigital aspirations.
JENDELA and MyDigital are two national initiatives to strengthen the level of connectivity and transform Malaysia into a digitally-enabled and technology-driven nation, respectively.
To further improve the nation's digital potential, the companies will also invest up to RM250 million over five years to build a world-class innovation centre in Kuala Lumpur.
The innovation centre will benefit local research and development by leveraging 5G, artificial intelligence (AI), and Internet-of-Things (IoT) technology.