Equity Analysis /
Malaysia

MY : DiGi.com - Merger with Celcom is a major win

    Choong Chen Foong
    Choong Chen Foong

    Telecommunication Analyst

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    CGS-CIMB
    8 April 2021
    Published byCGS-CIMB

    Telenor Axiata are in advanced discussions to merge Digi Celcom. Pre-synergy, we see Digi’s FY22F core EPS lifted by 7%. Potential synergies may be less than before but should still be sizeable; we assume RM5bn. Upgrade to Add from Hold, with a 14% higher TP of RM4.55.