XL and Axis Merger Becomes Official

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JAKARTA (Indotelko) - After long time waiting, XL and Axis management can breathe again now because the merger of both company is officialy announced.

The action marked by signing ceremony between two companies, XL and Axis Telecom. This means, XL and Axis are now effectively known as a single business entity which will serve more than 65 million cellular subscribers throughout Indonesia.

"We are very grateful. We appreciate for all the support given to us, especially regulators, shareholders, as well as XL and Axis consumers who have made this happend," President Director of XL Axiata, Hasnul Suhaimi said through official statement letter, Tuesday (8/4).

Hasnul said Consolidation in the telecommunications industry has become a necessity to ensure healthy and sustainable growth. As a single business entity, they will generate positive impacts and deliver greater benefits for subscribers, such as ensuring better service quality and network, serving bigger number of XL subscribers, and provide  wider availabiliity of products and customer services in the market.

"We called it Better, Bigger, and Wider," Hasnul said.

Through the merger with AXIS, Hasnul hope that XL will be able to provide better service quality and reach more subscribers throughout Indonesia.

Previously, on March 19th, XL had concluded the acquisition process, which officially makes XL the majority shareholder in AXIS. With 65 million subscribers, XL cellular marketshare in Indonesia approximately reach 21%. They promised this acquisition will not trigger any monopoly practice.

Before becoming official, XL has received approval from the Ministry of Communications and Information Technology and from XL’s shareholders through Extraordinary General Meeting of Shareholders some time ago.

The Merger Statement of XL and Axis has obtained the Effective Statement from the Financial Services Authority (OJK) as well as no objection from the Indonesian Stock Exchange. In addition, both XL and AXIS have obtained the approval from the Investment Coordinating Board (BKPM) for the acquisition plan. (ss)