Malaysia's Axiata Approves EXCL-FREN Merger Plan

JAKARTA, investortrust.id — The controlling shareholder of Indonesia’s telecom firms PT XL Axiata Tbk and PT Smartfren Telecom Tbk has approved their proposed merger, moving the plan closer to completion. Malaysia-based Axiata Group Berhad, which holds a controlling stake in XL Axiata, granted its approval following an extraordinary general meeting of shareholders.

Axiata Group announced the outcome in a filing to Bursa Malaysia on Monday, March 24, 2025. In its official statement, XL Axiata announced that the shareholders' resolution had been submitted to the stock exchange as required by regulations. The company described this approval as a significant step toward completing the merger, bringing the creation of the new entity, XLSMART, closer to reality.

The planned merger will be brought before the shareholders of XL Axiata (ticker: EXCL) and Smartfren Telecom (ticker: FREN) in separate extraordinary meetings scheduled for Tuesday, March 25, 2025. The key agenda is to secure shareholder endorsement for the merger.

Despite a 1.55% drop in the Jakarta Composite Index (JCI) on Monday, EXCL’s share price remained stable, closing flat at Rp 2,260 per share. Over the past week, EXCL shares slipped just 0.44%, outperforming the broader market’s 4.36% decline during the same period. The sell-off in the JCI was attributed to significant foreign capital outflows amid global macroeconomic uncertainty.

Analysts see the telecom merger as a bright spot in the market. In its latest strategy report, Indonesian brokerage MNC Sekuritas noted that the telecommunications sector has attracted net foreign inflows. Foreign investors bought Rp 232 billion worth of EXCL shares, which the firm attributed to investor confidence in the upcoming merger with FREN.

MNC Sekuritas has named EXCL as one of its top stock picks, citing the company’s solid profit-generating ability, resilience, and strong market momentum even amid broader market volatility.