Malaysia's Axiata Group and Indonesia's PT Sinar Mas are in talks to merge the telecommunications operations of PT XL Axiata and PT Smartfren Telecom subsidiaries in Indonesia. This is reported in the press release of Axiata.
The owners of PT XL Axiata and PT Smartfren Telecom are discussing the terms and structure of the deal, which will create a telecommunications company worth $3.45 billion with 100 million customers amid growing demand for telecommunications services in Indonesia.
The market value of Axiata is $1.9 billion, and the market value of Smartfren is $812 million.
In May, the companies signed a non-binding memorandum of understanding. Axiata and Sinar Mas sought to remain as controlling shareholders of the combined company.
From the point of view of Axiata Group, the combined company will provide high-quality customer service in the telecommunications sector and create additional shareholder value, including through synergies from the joint activities of XL Axiata and Smartfren.
Axiata is one of the largest Asian telecommunications companies. The company's shares are listed on the main market of Bursa Malaysia Securities Berhad. Axiata owns controlling stakes in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia, as well as significant strategic stakes in assets in Pakistan, Nepal, Myanmar, Laos, Thailand and the Philippines. The headquarters is located in Kuala Lumpur (Malaysia).
Sinar Mas is one of the largest conglomerates in Indonesia with a large number of subsidiaries in various sectors including pulp and paper industry, real estate, financial services, agribusiness, telecommunications and mining. The companies' shares are listed on the Indonesian and Singapore Stock Exchanges. The headquarters is located in Jakarta (Indonesia).
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