In terms of rationale, Digilife Technologies says the strategic decision for non-renewal was made after careful consideration of several factors, including XL Axiata’s change in distribution strategy.
Digilife Technologies (SGX:BAI
) has announced that its subsidiary PT Selular Global Net (SGN) has decided not to participate in the distribution agreement renewal process of Indonesian telecom operator XL Axiata on Feb 20.
As such, XL Axiata has notified Digilife Technologies that the telecom distribution agreement between SGN and XL Axiata shall not be renewed after its term expires on Feb 29. Following the non-renewal, SGN will cease to be a distributor for XL Axiata, with a transition period expected to be completed by March 31.
