JAKARTA – Both PT XL Axiata Tbk (EXCL) and PT Smartfren Telecom Tbk (FREN) were seen corrected at the end of morning session today (11/12) following the merger plan.

This morning, both major shareholders of EXCL and FREN officially announced merger plan to the public after signing an agreement yesterday (10/12).

Monitoring the board this afternoon, FREN saw IDR 2 or 7.4% slippage to IDR 25 from IDR 27 recorded at the opening bell. This price is the lowest, year-to-date (ytd). It was reduced by 50% from its price level at the beginning of the year, at IDR 50 per share.

The same trend applied to EXCL, reporting IDR 30 or 1.31% decline to IDR 2,260 from IDR 2,690 per share. However, EXCL’s price still increased 13% from IDR 2,000 per share seen at the beginning of 2024.

As is known, EXCL and FREN signed a merger contract, with projection of pre-synergy consolidated value of IDR 104 trillion, last Tuesday (10/12). Its revenue is projected to reach IDR 45.4 trillion with EBITDA of over IDR 22.4 trillion. This merger of these telecommunication services will take effect on April 15, 2025. (LK/ZH)