Axiata group chief executive officer Tan Sri Jamaludin Ibrahim (right) speaking during a press conference after Axiata’s Annual General Meeting on May 29. Also seen is Axiata chairman Tan Sri Ghazzali Sheikh Abdul Khalid. – Bernama file photo
KUALA LUMPUR: The negotiations of the proposed merger between Axiata Group Bhd and Norway’s Telenor ASA are on track and expected to be completed within the estimated time frame.
Axiata group chief executive officer Tan Sri Jamaludin Ibrahim said they had completed about 70 per cent of due diligence on the proposed merger to date.
“When we announced the merger in May, (we said) full agreement might take three to six months. This is our fourth month.
“Obviously it is not as fast as most people think it should be, but it is still within the expected time. It does not reflect problems, it’s just there is a lot to be discussed,” he told reporters after announcing the group’s performance for the second quarter ended June 30, 2019, here today.
Jamaludin pointed out that it also involved two major issues, namely the national and employees’ interests.
He added that they would engage the regulators once the deal is signed.
“It is required that we sign first and then apply for necessary approvals from all the nine countries’ (authorities),” he said.
Axiata returned to the black with a net profit of RM204.10 million for the quarter under review after reporting a net loss of RM3.36 billion a year ago.
Revenue jumped 4.9 per cent to RM6.15 billion from RM5.87 billion previously, it said in a filing with Bursa Malaysia.
The company attributed the strong results to the performance of all operating companies apart from its mobile operations in Malaysia and Nepal, as well as improved performance and the discontinuation of losses related to the group’s investments in India.
Commenting on the results, Jamaludin said Axiata was likely to exceed its 2019 headline key performance index for earnings before interest, tax, depreciation and amortisation, as well as return on invested capital.
He added that with the ongoing capital expenditure (capex) rationalisation, 2019 capex was likely to be below guidance of RM6.8 billion. – Bernama