UPDATE: The proposed merger between Indonesian telecoms operators XL Axiata and Smartfren Telecom has cleared a key hurdle after shareholders in both telcos, as well as Axiata Group, voted to approve the plan.
Under the merger plan, first announced in December 2024, Smartfren and its subsidiary SmartTel will be dissolved into XL Axiata. The resulting new company, XLSmart (full name: PT XLSmart Telecom Sejahtera Tbk), will be jointly controlled by parent companies Axiata Group and Sinar Mas, who will each hold a 34.8% stake.
Axiata Group said in a statement on Monday that its shareholders approved the deal at the company's Extraordinary General Meetng (EGM). On Tuesday, shareholders of XL Axiata and Smartfren voted in favour of the merger at their own respective EGMs. The boards of XL Axiata, Smartfren, and SmartTel approved the merger plan when it was announced in December.
Axiata said it has submitted the results of the shareholder vote to Bursa Securities in compliance with regulatory requirements. The group also said the approval “marks a key milestone in finalising the merger, bringing the formation of the new entity, XLSmart, another step closer to completion.”
Axiata and Sinar Mas aim to complete the merger within the first half of 2025.
Axiata has placed the combined pre-synergy enterprise value of the merger at IDR104 trillion (US$6.5 billion). With a combined mobile subscriber base of approximately 94.5 million and a market share of 27%, XLSmart is expected to generate pro forma revenues of more than IDR45.4 trillion and an EBITDA of over IDR22.4 trillion.
