AXIATA EXPECTS SOME HURDLES
Binding agreement may be signed once due diligence is completed in 3-6 months
THE proposed merger of Axiata Group Bhd and Norwegian giant Telenor Group’s Asian operations may hit some bumps, but Axiata does not expect major surprises.
Axiata president and group chief executive officer Tan Sri Jamaludin Ibrahim said some hurdles were expected before both parties could sign a binding agreement.
“From now until then (the signing of the binding agreement), Telenor and Axiata have to agree on what we have agreed upon earlier, and other details that we are doing for due diligence.
“However, I do not expect any surprises,” he said after Axiata’s annual general meeting, here, yesterday.
Another tricky task will be getting the approval from the shareholders of both companies.
Jamaludin said its shareholders included Khazanah Nasional Bhd, Permodalan Nasional Bhd
(PNB) and the Employees Provident Fund (EPF).
“After we have signed the agreement, we have to go through extraordinary general meetings to get approvals from shareholders such as Khazanah, PNB and EPF.
“The government, through these companies, will also have the right to vote.”
In the three to six months, both companies will undertake due diligence.
Jamaludin said this included looking into the balance sheet, receivables, liabilities, licences, compliance and legal issues.
He said Axiata and Telenor were only expected to sign the binding agreement after that.
“We will have to agree on the management team, primarily for the MergedCo and at least a few people in (its subsidiary) MalaysiaCo.
“As for the rest of the operating companies on their side and our side, there is no intention to change the management. So we do not expect any change in Sri Lanka, Thailand, Indonesia and Cambodia, among others.”