XL-Smartfren Merger Edges Closer Amid Starlink's Debut in Indonesia

Malaysia's Axiata Group Berhad is continuing its discussions with the Sinar Mas group regarding the PT XL Axiata Tbk merger with PT Smartfren Telecom Tbk. According to a report by Bloomberg on Thursday, Apr. 25, the proposed merger could create a new entity valued at approximately US$3.5 billion. A source told Bloomberg that "a non-binding agreement may be reached in the coming months, allowing the companies to continue negotiations and carry out due diligence." However, there is no guarantee that a deal will be finalized.

XL Axiata's management stated they had not received any information from the shareholders or Axiata Group Berhad regarding a potential merger with Smartfren. XL Axiata President Director Dian Siswarini mentioned that corporate actions such as mergers or acquisitions fall within the scope of shareholder decisions. "As of now, there's no indication of a merger," Dian said on Apr. 25. Earlier, Usman Kansong, Communications and Information Technology Ministry's Director General of Public Information and Communications, noted that the two parties had met.