Smartfren Telecom Delisted Following Merger with XL Axiata: A new Era for XLSmart
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Published: by Archnetys
Delisting and the Dawn of XLSmart
The Indonesian capital market landscape has shifted considerably with the official delisting of PT Smartfren Telecom Tbk (Fren) from the Indonesia Stock Exchange (BEI), effective today, April 17, 2025. This move signals the completion of the highly anticipated merger between Fren and PT Smart Telecom into PT XL Axiata Tbk (EXCL),giving rise to a new entity known as XLSmart.
The Indonesia Stock Exchange (BEI) formally approved the delisting, citing IDX Regulation Number IG, item A number 8, which addresses business mergers and consolidations. This regulatory framework provides the basis for the Capital Market Authority’s decision to delist Fren shares.
Therefore starting from April 17, 2025, the effect of PT Smartfren telecom Tbk (Fren) cannot be traded on the Indonesia Stock Exchange.BEI Management
The exchange has urged stakeholders to closely monitor announcements related to the merger, notably concerning the schedules of upcoming corporate actions.
The merger involved the conversion of 5.07 billion Fren shares into EXCL shares, bringing the total outstanding shares of the merged entity to 18.2 billion. This consolidation aims to create a stronger,more competitive player in the Indonesian telecommunications market.
The Extraordinary General Meeting of Shareholders (EGMS) held on March 25, 2025, formalized the merger, paving the way for the creation of XLSmart. The projected pre-synergy value of this union is estimated at a staggering Rp 104 trillion, with anticipated pre-tax synergies ranging from US $300-400 million annually. Proforma revenue is projected to reach Rp 45.8 trillion.
These figures underscore the potential for significant growth and efficiency gains resulting from the merger. As of Q1 2025, the Indonesian telecommunications market is experiencing a surge in data consumption, driven by increased smartphone penetration and the growing popularity of digital services. XLSmart is strategically positioned to capitalize on this trend.
Market Impact and Future Outlook
With a combined customer base of 94.5 million and an estimated EBITDA of Rp 22.5 trillion, XLSmart is poised to capture a significant 25% market share. This positions the new entity as a major contender in the Indonesian telecommunications landscape, challenging existing market leaders.
The merger is expected to unlock considerable synergies through network optimization, streamlined operations, and enhanced customer service. By combining the strengths of both Smartfren and XL Axiata, XLSmart aims to deliver superior value to its customers and shareholders.
Industry analysts predict that the emergence of XLSmart will intensify competition in the Indonesian telecommunications market, potentially leading to lower prices and improved services for consumers. The long-term impact of this merger remains to be seen, but it undoubtedly marks a pivotal moment in the evolution of the Indonesian telecommunications industry.
