Malaysia’s Axiata in talks to buy smaller Indonesia telecom rival: CEO

KUALA LUMPUR: Malaysian telecommunications company Axiata Group Bhd is in talks to buy a smaller rival in Indonesia in a share-swap deal to cut costs and competition in its biggest market, as COVID-19 hammers businesses, its CEO told Reuters.

After PT Telekomunikasi Indonesia Tbk, Axiata unit PT XL Axiata Tbk is the second-biggest player by subscriber numbers in Southeast Asia’s most populous country. Axiata is followed by PT Indosat Tbk, PT Smartfren Telecom Tbk and the local telco unit of Hong Kong conglomerate CK Hutchison Holdings Ltd.

“Except for the biggest player, I can tell you right now we are talking to all for some kind of an arrangement,” Axiata Chief Executive Jamaludin Ibrahim told Reuters in an interview on Saturday over Microsoft Teams, declining to specify a target.

“I can’t imagine buying two, and you don’t need to anyway.”