KUALA LUMPUR (Dec 6): Axiata Group Bhd has announced a special tax-exempt dividend of four sen per share following the completion of the Celcom-Digi merger on Nov 30.
Axiata received a cash consideration of RM2.5 billion from Digi.Com Bhd and RM300 million from Digi’s parent company Telenor Asia Pte Ltd, as part of the transaction.
“The bulk of the cash proceeds from the merger exercise will be channelled towards strengthening its balance sheet by paring down Axiata’s debt,” Axiata said in a statement. “The special dividend to reward shareholders stems from the remaining cash.”
The payment date of the dividend will be determined later, the telecommunications group said.
The group also said that in advancing its regional expansion strategy, Axiata remains focused on positioning the business to capture new opportunities as it champions digitalisation for communities across Asia.
On Nov 30, Axiata and Digi said their merger had been completed, with Axiata and Telenor having equal ownership of 33.1% each.
On the following day, CelcomDigi (Celcom Axiata Bhd and Digi Telecommunications Sdn Bhd) said it had formalised the appointments of Datuk Idham Nawawi as chief executive officer and Albern Murty as deputy CEO. Idham was the incumbent CEO of Celcom Axiata while Albern was the incumbent CEO of Digi.
Axiata’s share price closed two sen or 0.65% higher at RM3.09 on Tuesday (Dec 6), giving a market capitalisation of RM28.36 billion.
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