From left: President of Indonesia Prabowo Subianto, chairman of Sinar Mas Telecommunications and Technology Franky Oesman Widjaja, chairman of Axiata Tan Sri Shahril Ridza Ridzuan and Prime Minister Datuk Seri Anwar Ibrahim
KUALA LUMPUR: Axiata Group Bhd
and Sinar Mas have signed two letters of intent (LOI) to explore a series of strategic collaborations.
In a statement, Axiata said the first LOI outlines specific projects and initiatives to drive further collaboration around potential synergies in Malaysia, Indonesia, and Southeast Asia.
"Leveraging their respective telecommunications ecosystems, Axiata and Sinar Mas aim to explore opportunities to unlock value for stakeholders in several high-growth areas, including advanced 5G solutions, enterprise services, digital infrastructure, and fintech innovations.
"Ultimately, these potential advancements stand to support digital transformation initiatives across the region," it said.
The second LOI reaffirms Axiata’s and Sinar Mas’s various commitments set out in the definitive agreements jointly announced on Dec 11, 2024, to progress the proposed merger of PT XL Axiata Tbk, PT Smartfren Telecom Tbk, and PT Smart Telcom to form PT XLSmart Telecom Sejahtera Tbk (XLSmart) in Indonesia.
According to the statement, the LOI reiterates the parties' desire to, amongst others, work together in good faith to meet the agreed conditions outlined in the definitive agreements, ensuring the smooth progression of the transaction.
It also underscores their intent to enhance and unlock potential synergies arising from bringing their respective businesses together.
Additionally, the parties aim to support XLSmart in exploring the optimal strategic approaches for integration, including the “hold and grow” strategy, adopting an “asset-right/light” model, and pursuing potential network-sharing opportunities to maximise value and operational efficiency.
"These Letters of Intent with Sinar Mas represent a pivotal step in advancing regional collaboration to shape Southeast Asia’s next wave of digital transformation and advance services in high-growth areas.
"By deepening and reaffirming our ongoing partnership with Sinar Mas, we aim to harness the transformative potential of 5G, enterprise solutions, and digital infrastructure to drive sustainable economic growth and bridge the digital divide across Malaysia, Indonesia, and beyond,” said Axiata group CEO Vivek Sood.
Sinar Mas Telecommunications and Technology chairman Franky Oesman Widjaja said it is keen to collaborate with Axiata to explore new innovative opportunities while supporting Malaysia and Indonesia’s vision of a thriving and inclusive digital economy.
