JAKARTA. Telecommunication companies, PT XL Axiata Tbk. (EXCL) and PT Smartfren Telecom Tbk. (FREN) has signed a non-binding Memorandum of Understanding following the planned merger of the two telecommunications companies.

The MoU was signed by Axiata Group Berhad (Axiata) and PT Wahana Inti Nusantara (WIN), PT Global Nusa Data (GND), and PT Bali Media Telekomunikasi (BMT), collectively referred to as Sinar Mas. "This transaction plan is still in the initial evaluation stage, where Axiata and Sinar Mas aim to remain controlling shareholders of MergeCo," explained XL Axiata's press release, Wednesday (15/5/2024). As is known, the merger plan will create a new entity, namely MergeCo.

Currently, ongoing discussions between the parties have not resulted in a binding agreement or completion of the Transaction Plan. Validation of the merger and creation of value for shareholders, due diligence, preparation of a joint business plan and agreement on important terms will be the main activities carried out during the exploratory phase stipulated in the MOU, management explained.

On Monday (13/5), foreign investors appeared to sell 504.19 million shares of telecommunications company PT Smartfren Telecom Tbk (FREN) with a net volume of 448.64 million shares. This sale was one of the contributors to the increase in foreign sales volume to 3.60 billion shares in trading that day. (AM/LM)