JAKARTA - The merger plan of PT XL Axiata Tbk (EXCL) and PT Smartfren Telecom Tbk (FREN) is considered to be going smoothly with the approval of shareholders, especially EXCL bondholders.

Niko Margaronis, Analyst of PT BRI Danareksa Sekuritas (BRIDS) said that the merger plan of the two telecommunications companies received positive signals from bondholders regarding the dilution of Axiata's parent company.

"Meanwhile, two creditors have given their approval and objections from vendors have been resolved," he said in BRIDS' Equity Research, Thursday (6/3).

On the other hand, Smartfren and Smart Telecom (Smartel) have also received creditor approval, regarding the required budget of IDR 6.9 trillion.

The merger and transfer of Smart Telecom's spectrum to EXCL is currently in process at the Ministry of Communications and Digital (Komdigi). The final outcome is likely to be with the option of returning the frequency spectrum.

During the week, EXCL's share price strengthened 0.89% or IDR 20 to IDR 2,260 per share. Meanwhile, FREN's share price was stable at IDR 23 per share. (LK/LM)