Telekom Malaysia to merge with Axiata?

Telekom Malaysia to merge with Axiata?

Recently, there are reports from sources stating that a merger between Telekom Malaysia Bhd (TM) and Axiata Group Bhd is on the cards as a means to strengthen the former in an increasingly converged market.

Sources say that both companies have already hired advisors, with CIMB Investment Bank advising TM while Goldman Sachs is working for Axiata on the deal.

 

While TM is by far the most dominant player in the fixed line and broadband market with more than 90% of the share, Axiata’s key asset Celcom is the third largest mobile operator in terms of number of subscribers in Malaysia.

Working together, the two could be an even more formidable force in an increasingly competitive market.

The merger plans come amidst rumours that Datuk Seri Shazalli Ramly, who is best known for his 11-year stint as the head honcho of Celcom Axiata Bhd, is said to be the frontrunner to take over the helm at TM.

TM’s current CEO and managing director Tan Sri Zamzamzairani Mohd Isa, 55, who has led the firm since 2008, is said to be leaving the top position this month.

On the rationale of the merger, it is understood that this is part of a strategy to ensure that both TM and Celcom compete better in the crowded industry.

 

 

 

If TM actually only needs Celcom, should it buy out Celcom only?

SOURCE