Axiata, Sinar Mas Said to Move Closer to $3.5 Billion Deal (1)

Wireless carrier Axiata Group Bhd. and conglomerate PT Sinar Mas Group are moving forward with plans to merge their telecommunications operations in Indonesia, people familiar with the matter said.

The owners of PT XL Axiata and PT Smartfren Telecom are discussing the structure of a potential transaction that would create a $3.5 billion entity with about 100 million customers, the people said. A deal could involve a mix of cash and shares, they said, asking not to be named as the process is private.

A non-binding agreement may be reached in the coming months, allowing the companies to continue negotiations ...