Axiata Group, Sinar Mas in MOU to explore merger of XL Axiata and Smartfren in Indonesia

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Both parties intend to remain as joint controlling shareholders of MergeCo Significant value to arise from combined scale, competencies, finances and expertise Axiata Group Bhd and PT Wahana Inti Nusantara (WIN); PT Global Nusa Data (GND); and PT Bali Media Telekomunikasi (BMT) (collectively referred to as Sinar Mas) (Axiata and Sinar Mas...

By Digital News Asia May 17, 2024Axiata Group Bhd and PT Wahana Inti Nusantara ; PT Global Nusa Data ; and PT Bali Media Telekomunikasi announced on 15 May that they have entered into a non-binding MOU to mutually explore a proposed merger of XL Axiata and Smartfren to create a new entity .

The proposed transaction is at an early stage of evaluation with both Axiata and Sinar Mas intending to remain as joint controlling shareholders of MergeCo. The Parties point out that there is no certainty that the ongoing discussions between them will result in the entry into any binding agreement nor the completion of the proposed transaction. Validation of merger rationale and value creation to shareholders, due diligence, preparation of a joint business plan and agreement on key terms will be the principal activities carried out during the exploratory phase governed by the non-binding MOU.

Axiata believes that MergeCo will have the strategic agility, competence, and scale to meet increasing expectations and demand from consumers, businesses, and the Indonesian public sector. MergeCo is expected to deliver superior customer experience in the telecommunications sector and create additional shareholder value including through synergies from the combined operations of XL Axiata and Smartfren.

Axiata emphasized that it is committed to remaining a leading player in Indonesia's digital and technology landscape, supporting the country's digital future. Indonesia is an important market and key to its strategic initiatives. XL Axiata is Axiata’s largest asset and from a portfolio standpoint, Indonesia is the highest value creator, where it runs five main businesses - XL Axiata, Link Net, EDOTCO, Boost and ADA.Axiata and XL Axiata Complete Acquisition of 66.

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