Telenor ,Axiata and Digi have today completed the merger of the telecommunication operations ofCelcom Axiata and Digi. The new company will be named Celcom Digi and will continue its Digi listing onBursa Malaysia . The closing of the transaction represents another step in the execution of the mid-term strategy presented at theTelenor Group capital markets day in September. On completion,Axiata received newly issued Digi shares representing 33.10 percent of the enlarged share capital of Digi, and a cash consideration ofMYR 2.5 billion funded by Digi and to be assumed by the merged entity. Digi also issued shares toTelenor to reach equal ownership followingTelenor's payment ofMYR 0.3 billion toAxiata . Celcom Digi will be the largest listed technology company onBursa Malaysia . On a pro forma basis for the financial year 2021, Celcom Digi will serve an estimated 20 million customers with an EBITDA of aroundMYR 5.8 billion (aroundNOK 12.8 billion ). The company remain committed to the previously announced synergy target with net present value ofMYR 8 billion (aroundNOK 18 billion ). Digi will be deconsolidated and accounted for as an associated company inTelenor ASA books as ofNovember 30 and all historical accounts will be re-presented, presenting Digi as discontinued operation. The new associate, Celcom Digi will be recognised based on the market value on1 December 2022 and accounted for under the equity method going forward. Based on book values of Digi as of30 September 2022 and market value of Digi as of30 November 2022 ,Telenor estimate a gain of aroundNOK 30 billion to be recognised in Q4 2022. All things being equal, deconsolidating Digi will increaseTelenor Group's net debt to EBITDA ratio by around 0.1x. Telenor Group Pro forma results excluding Digi (NOK million) Revenues EBITDA boi Q421 24 865 10 148 Q122 23 811 10 055 Q222 24 713 10 820 Q322 25 028 11 352 Investor Relation contacts Øystein Myrvold +47 99 23 04 60Håkon Hatlevik +47 90 14 60 70 Media contact:David Fidjeland +47 93 46 72 24
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