Dian Swastika Sentosa (DSSA), owned by Sinarmas Group, had sold 30.5 billion shares in cellular firm Smartfren Telecom (FREN), also owned by Sinarmas Group, at price of Rp79 per share or Rp2.4 trillion in total. This aims to realign the investment portfolio. With this sale, DSSA’s ownership in FREN was reduced from 15.8% to 6.7%.
Other shareholders of FREN are PT Global Nusa Data with 23.8% ownership, PT Wahana Inti Nusantara 14.5%, PT Bali Media Telekomunikasi 9.8%, non-scrip public ownership 24.6%, and scrip public ownership 13.9%.
Media earlier reported that FREN intends to merging with XL Axiata (EXCL). Since 2021, Smartfren teased XL regarding the merger of the two companies. Said merge is expected to increase telecommunications in Indonesia. This is to happen, as the consolidation between Indosat Ooredoo (ISAT) and Tri Hutchison had happened in September 2021.
With merging, FREN will benefit, have a large customer base and infrastructure, and be more competitive with other larger telco operators. The margin will be improved, so as the profitability.
Some meanwhile believe that merger of FREN and EXCL would only benefit XL, getting additional networks and new customers. Then XL has the potential to displace Indosat (ISAT), ranked second in the Indonesian market. Apart from mergers, other options being considered are network sharing agreements and partnerships.