JAKARTA. PT XL Axiata Tbk (EXCL) and PT Smartfren Telecom Tbk (FREN) give an escape for minority shareholders disapproving of the merger through buyback option.

In the official statement, EXCL and FREN are said to only offer buyback of up to 10% of their shares outstanding each pre-merger. Total allocated budget for this buyback is IDR 3.09 trillion.

The exercise price of EXCL buyback is set to IDR 2,350 per share, while FREN fixes the price to IDR 25 per share.

Should the buyback require more capital, Axiata and Sinarmas will step in as standby buyer with equal portion. For the record, these two are the ultimate controlling shareholders of EXCL and FREN, respectively.

EXCL will be the surviving entity under the new name previously announced, PT XLSmart Telecom Sejahtera Tbk (EXCL). This entity is projected to record pre-synergy enterprise value of over IDR 104 trillion or equal to approximately USD 6.5 billion.

Axiata and Sinarmas will claim equal portions of the shares in XLSmart Telecom Sejahtera. Meanwhile, public investors will be left with 30.4% of the shares.

Extraordinary General Meeting of Shareholders regarding the merger between EXCL and FREN is set to march 21, 2025. The merger, however, is projected for completion in the first half of 2025. (KR/ZH)