On Mar. 25, shareholders of XL Axiata, Smartfren Telecom, and Smart Telcom approved the merger of the three companies during Extraordinary General Meetings.

This merger represents a significant development in Indonesia’s telecommunications sector.

The merger has received regulatory approvals from Indonesia’s Ministry of Communication and Digital Affairs, the Indonesia Stock Exchange (IDX), and the Financial Services Authority (OJK).

It will create a new entity, XLSmart, which will serve over 94.3 million subscribers.

XLSmart is projected to generate annual revenue of 45.8 trillion rupiah (US$2.76 billion) with an EBITDA of 22.5 trillion rupiah (US$1.35 billion).

Axiata Group and Sinar Mas will each hold a 34.8% stake in XLSmart, overseeing its strategic direction together.

Rajeev Sethi has been appointed as President Director and CEO of the new entity.

Recent Axiata developments