Axiata, Sinar Mas seeking to merge telco operations in Indonesia

Axiata Group and PT Sinar Mas Group are reportedly moving forward with plans to merge their telecommunications operations in Indonesia. 

According to Bloomberg, the owners are discussing the structure of a potential transaction that would create US$3.5 billion entity with about 100 million customers. 

A deal could allegedly involve a mix of cash and shares.

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A non-binding agreement may be reached in the coming months, said media reports. This will allow the companies to continue negotiations and carry out due diligence. 

However, there is no guarantee that a deal will go through. 

As reported by Reuters, XL Axiata is open to explore various possibilities to carry out consolidation with relevant parties. However, the decision is reportedly with the shareholders and not with the management. 

MARKETING-INTERACTIVE has reached out to Axiata Group and Sinar Mas for more information. 

This merger comes after Dialog, Axiata Group and Bharti Airtel's signed a definitive agreement to merge operations in Sri Lanka earlier in April. 

Under this agreement, Dialog will acquire 100% of the issued shares in Airtel Lanka. The transaction is subject to the approval of Dialog's shareholders and is pending the completion of specific conditions outlined in the share sale agreement.

This includes clearance from the Colombo stock exchange (CSE) and a completion of other applicable legal, corporate and regulatory compliance procedures.

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