Axiata is in the process of submitting the Celcom – Digi merger circular to Bursa Malaysia

Axiata is in the process of submitting the Celcom – Digi merger circular to Bursa Malaysia

KUALA LUMPUR: Axiata Group Bhd is in the process of submitting the Celcom Axiata Bhd merger circular to Bursa Malaysia to pave the way for an extraordinary general meeting in November.

Acting Joint Chief Executive Officer (CEO), Vivek Sood, said the transaction is expected to be completed before the end of the year.

Vivek said Digi has submitted the circular to the Malaysian Securities Commission (SC) and is awaiting approval.

“I can state that the ongoing discussions with the SC are positive,” he said in a media briefing on Axiata’s financial results for the second quarter today.

Axiata recorded a net loss of RM106.38 million in the quarter compared to a net profit of RM277.75 million in the same quarter last year, due to foreign exchange losses amounting to RM475.7 million mainly from mobile operations in Sri Lanka.

However, Vivek said the group has no intention of ending business in the country amid the debt crisis and the collapse of the Sri Lankan rupee.

“Dialog Axiata PLC remains a strong brand in this country. I think we are confident that we will come out of this crisis. I think we also see this situation as an opportunity.

“For example, Dialog is trying to combine its data centers, from seven to three. Perhaps, they have implemented it when business was going on as usual, however, this crisis has forced them to do so. Therefore, if we have managed to survive this crisis, the company will more resilient and more ready to enjoy better results,” he said.

Acting Co-CEO, Hans Wijayasuriya said, the currency is predicted to be stable, at least in the short term following encouraging discussions on the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) arrangements.

It is understood that the IMF mission that is visiting Sri Lanka from August 24 to 31 is for discussions on financial policy and reforms.

Meanwhile, Axiata said it is expected to surpass its overall key performance indicators (KPI) in 2022 which were previously set for mid-single-digit revenue growth and high single-digit earnings before interest and tax (EBIT) despite the current challenges.

Axiata has spent about RM2.7 billion of the capital expenditure of RM7.1 billion allocated for this year.

Vivek said the group still has several projects that have not yet been commissioned and is expected to spend close to RM7 billion in capex this year.

source – BERNAMA

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