KUALA LUMPUR (March 23): Malaysia’s two telco giants, Axiata Group Bhd and Telekom Malaysia Bhd (TM) have quashed rumours that both companies are en route to a merger. “In view of news articles building on the said speculation, Axiata wishes to specifically deny that it is currently engaged in any discussions with TM on a possible merger,” Axiata said in a regulatory filing this evening. “Axiata is committed [to] ensuring that material information is disseminated on a timely basis should there be any material information regarding the company,” the company said, adding that it will comply with the obligations stipulated under Bursa Malaysia’s Main Market Listing Requirements. In a separate statement, TM also “confirms that it is not currently in discussion with Axiata as purported in the article.” On March 18, a local daily paper — quoting sources – reported that a merger between Axiata and TM was on the cards, with Axiata hiring CIMB Investment Bank Bhd to advise on the deal, while TM was said to have hired Goldman Sachs. The appointment of Axiata’s regional chief executive officer for Southeast Asia, Datuk Seri Mohammed Shazalli, as TM’s new managing director also fueled the speculation. Shares in both TM and Axiata closed lower today. TM slipped one sen to settle at RM6.35, while Axiata shares gave up six sen to close at RM5, valuing the companies at a market capitalisation of RM23.86 billion and RM44.87 billion, respectively.
Axiata Group and Telekom Malaysia , the country 's two biggest telcos , have issued statements denying they are to merge . " Axiata wishes to specifically deny that it is currently engaged in any discussions with TM on a possible merger " , it said in a regulatory statement , while in a separate announcement , Telekom Malaysia " confirms that it is not currently in discussion with Axiata as stated in the article " . Local media quoted officials who said a merger between the two firms was set to take place .