- The parties ‘ telecom ecosystems are outlined in the first LOI, which outline cooperative efforts.
- 2nd LOI reaffirms the acquisition of PT XL Axiata, Smartfren &, Smart Telcom into PT XLSmart
At a ceremony attended by Indonesian president Prabowo Subianto and Malaysian prime minister Anwar Ibrahim, Axiata Group Berhad and Sinar Mas have signed two letters of intent ( LO Is ) to explore and develop strategic collaborations.
The second LOI provides a platform for in-depth discussions on joint activities utilizing their communications ecosystems. The cooperation will concentrate on high-growth areas such as innovative 5G solutions, business services, digital infrastructure, and blockchain innovations to help local digital transformation.
Vivek Sood, party CEO of Axiata Group, stated:” These LOIs with Sinar Mas indicate a key step towards shaping Southeast Asia’s online change. By harnessing the potential of 5G, business solutions, and electronic equipment, we aim to bridge the digital divide and generate sustainable development across Malaysia, Indonesia, and above.
We are thankful for the backing of the governments of Malaysia and Indonesia, whose forward-thinking digital procedures enable partnerships that are in line with regional and national goals. Collectively, we are building a radiant and equitable digital ecosystem.”
Under the first LOI, Axiata and Sinar Mas may do business assessments, review dynamic landscapes, and discover unmet demands across focus markets. Additionally, they may look into strategic alliances to incubate new businesses and solutions that are in line with the goals of the modern economy.
Franky Oesman Widjaja, president of Sinar Mas Telecommunications and Technology, remarked:” These LOIs with Axiata indicate an interesting book in accelerating digital change across Malaysia and Indonesia. By unlocking synergies and nurturing creativity, we aim to enhance communication, enable organizations, and generate regional economic growth.”
The proposed merger of PT XL Axiata Tbk, PT Smartfren Telecom Tbk, and PT Smart Telcom, forming PT XL Smart Telecom Sejahtera Tbk (XLSmart ) in Indonesia is reiterated in the clear agreements that were made on December 21, 2024. The merger, valued at over US$ 6.5 billion ( RM1.46 trillion ), is expected to enhance innovation, service quality, and digital connectivity while fostering a competitive market.
The LOI ratifies both parties ‘ intentions to function in good faith to abide by the terms of the agreements and look into synergies using techniques like network sharing and asset-right/light types to increase value and effectiveness.
The acquisition, pending typical final circumstances, is subject to regulatory and investor certifications and is anticipated to get completed in the first quarter of 2025. Updates will be communicated via formal channels, including trade announcements, regulation disclosures, and organization websites.