Axiata, Sinar Mas revive Indonesian unit merger talks, say sources

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The merger could lead to the consolidation of their telecommunications operations in Indonesia.

Axiata Group Bhd owns about 66% of Indonesia-based mobile telecommunications services operator PT XL Axiata.

The owners of PT XL Axiata and PT Smartfren Telecom are working with advisers to help weigh a potential transaction, the source said, asking not to be identified since the matter is confidential.XL Axiata shares have climbed about 18% this year, valuing the firm at US$2.2 billion . Smartfren’s stock has dropped about 18%, valuing the company at about US$1.2 billion.

In a follow-up on this matter, Smartfren president director Merza Fachys said he would wait and see the progress of the discussion, while a representative for Sinar Mas referred the request to Smartfren.A spokesperson from Axiata said the group is always on the lookout for collaborations and strategic partnerships with the hope to grow sustainably throughout its geographic footprint.

 

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