25-4-2024 (JAKARTA) Malaysian conglomerate Axiata Group and Indonesian group PT Sinar Mas are moving forward with their intentions to merge their telecom operations in Indonesia, according to sources familiar with the matter cited by Bloomberg News. The merger aims to create a new entity valued at $3.5 billion by combining their respective Indonesian units, PT XL Axiata and PT Smartfren. Discussions are currently underway to determine the structure of the deal, which could involve a combination of cash and shares.
While a non-binding agreement may be reached in the coming months, allowing the companies to continue negotiations and conduct due diligence, there is no guarantee that a final deal will be reached, as per the report. Reuters reached out to Axiata, XL Axiata, Sinar Mas Group, and Smartfren for comment, but they did not immediately respond.
This move comes on the heels of telecom operator Dialog Axiata, majority-owned by Axiata, signing an agreement last week to acquire Bharti Airtel’s operations in Sri Lanka.
The potential merger between Axiata and PT Sinar Mas in Indonesia reflects the ongoing consolidation trend in the telecommunications industry, driven by the pursuit of greater efficiency, market share expansion, and enhanced competitiveness. By combining their resources and expertise, the companies aim to create a stronger entity that can navigate the evolving landscape of the Indonesian telecom market.
