Axiata, Sinar Mas sign MoU to explore merger


The proposed merger is currently at its early stage of evaluation, with both Axiata and Sinar Mas intending to remain as joint controlling shareholders of MergeCo.

PETALING JAYA: Telecommunications giant Axiata Group Bhd has entered into a non-binding memorandum of understanding (MoU) with PT Sinar Mas to mutually explore a proposed merger of PT XL Axiata Tbk and PT Smartfren Telecom Tbk to create a new entity (MergeCo).

XL Axiata is Axiata’s largest asset within its Indonesian portfolio and is the third largest telecommunications company in the country with 58 million subscribers. Other main businesses under its Indonesian portfolio include Link Net, Edotco, Boost and ADA.

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