Alibaba & XL Merger News, Smartfren Boss Opens Up the Facts

Jakarta, CNBC IndonesiaThe management of the Sinar Mas Group telecommunication issuer, PT Smartfren Telecom Tbk (FREN) responded to the news of the entry of a global investor, Alibaba, owned by crazy rich China, Jack Ma, who was said to have bought the company’s shares.

Director of FREN, Antony Susilo, in his explanation to the Indonesia Stock Exchange (IDX) revealed, as a public company, the company is open to local and global investors.

“For FREN, if it can collaborate with global investors, it is hoped that it will open up opportunities for faster development,” said Antony, Wednesday (10/13/2021).

However, he said, up to now, there is no agreement regarding this that can be announced further to the public.

According to sources among capital market players, before, after PT Mora Telematika Indonesia (Moratelindo) annexed by FREN, there is news that Jack Ma’s company Alibaba will buy FREN’s stake at the end of the year.

As is known, previously on September 23, 2021, FREN shareholders approved Moratelindo’s plan of 145,730 shares equivalent to 65% ownership of Indo Pratama Teleglobal from PT Telekomunikasi Nusantara Sejahtera worth Rp. 18.21 billion on September 23, 2021.

This was also confirmed by the Corporate Secretary of FREN, James Wewengkang in the disclosure of information on the IDX.

“The news regarding the imminent transaction involving Moratelindo in the planned acquisition of 65 percent of Indo Pratama Teleglobal’s shares is true. The company currently owns 20.5 percent of its investment in Moratelindo,” said James.

Meanwhile, CEO of Moratelindo, Galumbang Menak said that the consideration of the acquisition was because the company is currently operating in eastern Indonesia, especially Papua, where it is impossible to reach all areas with fiber optic networks.

“We need satellites to reach areas where cable is not possible, or not yet possible, one day it might be possible if road access and demand have grown,” said Galumbang, when contacted by CNBC Indonesia, Wednesday (6/10/2021).

In addition, he said, considering that the route to Eastern Indonesia is still not full of redundant satellites, it can be an alternative if there is a disturbance in the fiber optic network.

Indo Pratama Teleglobal is a Very Small Aperture Terminal (VSAT) infrastructure vendor company. The company was founded in 2000 and currently also provides internet services, data communications, satellite internet telephony, data center and disaster recovery and other internet based business solutions.

Not only rumored to be bought by Alibaba, FREN is also said to be in the process of merging with the telecommunications issuer PT XL Axiata Tbk (EXCL).

Management emphasized that FREN is open to consolidation with other industry players aiming for operational efficiency, so that it can provide added value for shareholders. However, there is no further agreement regarding this merger.

[Gambas:Video CNBC]

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