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Axiata, Sinar Mas officially exploring RI telco business merger
Publicly listed telecommunication companies PT XL Axiata and PT Smartfren Telecom are considering a merger to create a new industry entity called MergeCo, according to a disclosure notice released on Wednesday.
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A tower owned by PT Dayamitra Telekomunikasi (Mitratel) is pictured in an undated photograph in Langsa, Aceh. (Mitratel/-)
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ajor shareholders of two publicly listed telco companies, PT XL Axiata and PT Smartfren Telecom, have agreed to explore a proposed merger of the two to create a new entity called MergeCo, according to a disclosure notice released on Wednesday.
This was marked by the signing of a non-binding memorandum of understanding (MoU) between Axiata Group Berhad and Sinar Mas Group, which are the holding companies for XL Axiata and Smartfren, respectively.
According to the statement, Sinar Mas was collectively represented by PT Wahana Inti Nusantara, PT Global Nusa Data and PT Bali Media Telekomunikasi.
“The proposed merger of XL Axiata and Smartfren is expected to bring together the combined scale, competencies, finance and deep telecommunication expertise of Axiata and the local scale and market knowledge of Sinar Mas to generate significant value,” Axiata Management said in a statement released on Wednesday.
Sinar Mas and Axiata Group would remain as joint controlling shareholders of MergeCo if the proposed transaction goes through, which is currently still in the early stages of evaluation.
“There is no certainty that the ongoing discussions between the two entities will result in entry into any binding agreement nor the completion of the proposed transaction,” the statement said.
Read also: XL-Smartfren merger would create powerful force, analyst says
