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Malaysia: Axiata relinquishes major rights in Idea ahead of Vodafone merger

By  |  August 19, 2018

Idea Cellular on Friday said Axiata, whose current holding in the company stands at over 16 per cent, has relinquished “all major rights” including that of nominating a director on the board.

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    Idea’s statement comes at a time when the telecom firm has received the government’s approval for merger with Vodafone.

    The combination is set to create the country’s largest mobile phone operator worth more than $23 billion with a 35 per cent market share. Post the mega merger, Axiata’s holding is likely to reduce to about 8 per cent.

    “With the relinquishment of rights, Axiata ceases to have significant influence on Idea in accordance with (the) applicable accounting standard, which will result in Idea being reclassified as a financial asset measured at fair value through other comprehensive income,” the Malaysian telecoms major said in its exchange filing.

    Full Content: Economic Times

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