Kuala Lumpur, Malaysia – Axiata Group Berhad and Sinar Mas have jointly announced the signing of two Letters of Intent (LOIs) to explore and advance a series of strategic collaborations at a ceremony graced by Malaysian Prime Minister Dato’ Seri Anwar Ibrahim and His Excellency Prabowo Subianto, the President of Indonesia, at the Petronas Twin Towers in Kuala Lumpur.
The first LOI lays a robust foundation for progressing detailed discussions outlining specific projects and initiatives that drive further collaboration around potential synergies in Malaysia, Indonesia, and Southeast Asia.
Meanwhile, the second LOI reaffirms Axiata’s and Sinar Mas’s various commitments set out in the definitive agreements jointly announced on 11 December 2024 to progress the proposed merger of PT XL Axiata Tbk, PT Smartfren Telecom Tbk, and PT Smart Telcom to form PT XLSmart Telecom Sejahtera Tbk, to known as XLSmart in Indonesia.
Leveraging their respective telecommunications ecosystems, Axiata and Sinar Mas aim to explore opportunities to unlock value for stakeholders in several high-growth areas, including advanced 5G solutions, enterprise services, digital infrastructure, and fintech innovations. Ultimately, these potential advancements stand to support digital transformation initiatives across the region.
Under the scope of the first LOI, Axiata and Sinar Mas will jointly conduct detailed market analyses, evaluate competitive landscapes, and identify unmet demand across priority markets. Both companies will assess core competencies within their respective ecosystems to prioritise opportunities and define optimal operating models to effectively capture market potential.
The parties also intend to facilitate strategic partnerships to incubate new businesses and solutions, ensuring alignment with national and regional digital economy agendas.
Meanwhile, the merger remains subject to regulatory and shareholder approvals, as well as customary closing conditions. Assuming all approvals and conditions are met, completion is expected in the first half of 2025. All material updates regarding the merger will be communicated through official channels, including exchange announcements, regulatory disclosures, and respective company websites.
Vivek Sood, group chief executive officer at Axiata Group, said, “These Letters of Intent with Sinar Mas represent a pivotal step in advancing regional collaboration to shape Southeast Asia’s next wave of digital transformation and advance services in high-growth areas. By deepening and reaffirming our ongoing partnership with Sinar Mas, we aim to harness the transformative potential of 5G, enterprise solutions, and digital infrastructure to drive sustainable economic growth and bridge the digital divide across Malaysia, Indonesia, and beyond.”
He added, “We deeply appreciate the steadfast support of the governments of Malaysia and Indonesia, whose forward-looking policies on connectivity and digital inclusion have set a strong foundation for such partnerships. By aligning our shared ambitions with national and regional digital economy agendas, we are laying the groundwork for a vibrant and inclusive digital ecosystem that delivers transformative services, empowers businesses, and enriches lives.”
Meanwhile, Franky Oesman Widjaja, chairman of Sinar Mas Telecommunications and Technology, commented: “These two Letters of Intent signed today with Axiata represent an exciting chapter in our shared mission to accelerate Malaysia and Indonesia’s digital transformation. We are confident in our ability to unlock synergies, deliver long-term value for stakeholders, and make a meaningful impact on the region’s digital economy by enhancing connectivity, fostering innovation, and empowering businesses and communities.”
“Sinar Mas is keen to collaborate with Axiata to explore new innovative opportunities while supporting Malaysia and Indonesia’s vision of a thriving and inclusive digital economy. Together, we aim to set a benchmark for regional collaboration, creating a more interconnected and prosperous future.”
