IT will take between nine months and a year to complete the regulatory approval process once a potential merger with Axiata Group Bhd is concluded, said Telenor Asia.

The prospective alliance between home-grown telco giant Axiata and the Asian operations of Norway’s Telenor is in the works.

“As we have previously communicated, we aim to conclude an agreement in the third quarter of 2019. The regulatory approval process following a potential agreement is estimated at nine to 12 months,” Telenor Asia’s director of communications, Cathrine Stang Lund, told The Malaysian Insight in an email response.

The potential synergy between the telco giants is estimated to value US$5 billion (RM20.65 billion).

A company will be formed following the merger’s completion, with Telenor Asia to hold a 56.5% stake and Axiata the remainder. The division of shares will be based on the valuation of assets.

The merger of the parent companies of Celcom and Digi will also birth the largest telco firm in Malaysia.

Stang Lund did not respond to questions on whether Digi will maintain its listing status on Bursa Malaysia, following the formation of the merged company.

Both Axiata and Digi are listed on the local stock exchange.

The mammoth merger will consolidate Axiata and Telenor Asia’s regional businesses, except for Bangladesh, in which both have a presence.

Following the consolidation, the companies will have access to a customer base of 300 million in nine countries. Axiata currently has a footprint in six of the nine markets, while Telenor has three.

Axiata is part of Khazanah Nasional Bhd’s stable of companies. The national sovereign wealth fund holds a 37.16% stake in the firm.

Plans for the merger were announced on May 6. – August 3, 2019.