MORA Prepares Acquisition of MyRepublic, Investors Face 50.5% Dilution Risk

PT Mora Telematika Indonesia Tbk (MORA) is preparing a business merger plan with PT Eka Mas Republik (EMR), the internet service provider branded as MyRepublic. This plan will be discussed at the Extraordinary General Meeting of Shareholders (EGMS) on 26 March 2026. “PT Mora Telematika Indonesia Tbk will be the surviving entity continuing its business activities,” states the document uploaded by MORA’s management to the Indonesia Stock Exchange’s disclosures. The agreed exchange ratio is one EMR share for 7,703.807548 MORA shares. Existing MORA investors will face a significant reduction in their ownership stake. “The merger will result in a dilution of share ownership percentage … by 50.50%,” according to the document from MORA’s management. The ownership of existing investors will drop by about half following the issuance of new shares to EMR shareholders. MORA operates a 57,779-kilometre fibre optic backbone network and data centre business in six major cities, focusing on infrastructure, connectivity, and the enterprise segment. EMR, or MyRepublic, provides retail broadband services. As of September 2025, EMR has 8.79 million home passes and over 1.5 million customers. This combination indicates a direction towards vertical integration, with MORA expanding access to retail customers and MyRepublic gaining wider infrastructure support. The document notes, “The main risk that may arise from the business merger is the risk of integration costs and execution.” Integrating networks, systems, and customer bases could lead to additional costs, with potential short-term operational disruptions. This plan is not yet effective; approval from regulators and shareholders is still required. “This merger plan has not been declared effective by the Financial Services Authority and has not obtained approval from the EGMS,” the management states. Rejection at the EGMS would mean a new proposal could only be submitted after 12 months. The final decision will be made at the EGMS on 26 March 2026.