Finally, there appears to be a glimmer of hope for the merger proposal between XL Axiata and Smartfren. Axiata Group Berhad Malaysia and the collective group representing Sinar Mas, namely PT Wahana Inti Nusantara, PT Global Nusa Data, and PT Bali Media Telekomunikasi announced a new round of agreement. The parties signed a Memorandum of Understanding to explore the merger plans between XL Axiata and Smartfren.
However, the plan to create a new entity is non-binding. The Transaction Plan is still being evaluated. Axiata and Sinar Mas want to keep control of MergeCo. The parties involved are still discussing, but they haven’t reached a binding agreement or completed the Transaction Plan yet. This is according to information from Gizmologi.
Validation of the merger and creation of value for shareholders, due diligence, preparation of a joint business plan and agreement on important terms will be the main activities carried out during the exploratory phase stipulated in the MOU. “Any important developments related to this MOU will be announced as necessary. “If a binding agreement is signed at a later date, the related transaction will be subject to applicable regulations and corporate and government approval,” said a written statement received by Gizmologi today in Jakarta (15/5).
Purpose of the Merger of XL Axiata and Smartfren
With the aim of becoming a stronger telecommunications service provider in Indonesia, the proposed business merger between XL Axiata and Smartfren is expected to bring together the scale, competence, finances and deep telecommunications expertise of Axiata and the local scale and market knowledge of Sinar Mas to produce synergistic value. significant. Both parties are expected to provide a balanced influence on MergeCo’s strategic direction and operational decisions, by leveraging their respective strengths.
Axiata believes that MergeCo will have the strategic agility, competence and capabilities to meet the increasing expectations and demands of consumers, businesses and the public sector in Indonesia. MergeCo is expected to provide the best experience for consumers in the telecommunications sector and create added value for shareholders, through synergies from the merger of XL Axiata and Smartfren operations.
Axiata is committed to remaining a leading player in the digital and technology landscape in Indonesia, adhering to a long-term vision in supporting Indonesia’s digital future. Indonesia is an important market and key to the company’s strategic initiatives. XL Axiata is Axiata’s largest asset and in terms of portfolio, Indonesia is the highest value producer, where the company runs five main businesses – XL Axiata, Link Net, EDOTCO, Boost and ADA.
The Indonesian version of this article can be read in Gizmologi.ID
