JAKARTA/SINGAPORE (July 5): According to persons familiar with the situation, Axiata Group Bhd, Malaysia’s largest wireless carrier, is in advanced talks to buy a share in Indonesian internet provider PT Link Net. According to the persons, talks between Axiata and the potential sellers, CVC Capital Partners and PT First Media, a unit of the billionaire Riady family’s Lippo Group conglomerate, are progressing.
According to the persons, Axiata is considering various possibilities for the prospective deal structure, including purchasing the interest through its Jakarta-listed business PT XL Axiata. They asked not to be identified since the process is confidential.
According to the sources, there’s no guarantee that the talks with Axiata would result in a deal. Axiata, CVC, First Media, Link Net, and XL Axiata representatives declined to comment.
Based on Monday’s closing price, Link Net has a market value of 12.4 trillion rupiah (US$857 million). According to Bloomberg data, CVC Capital Partners owns 36 percent of Link Net while PT First Media controls 28 percent.
According to persons acquainted with the situation at the time, CVC and First Media discussed selling a majority stake in Link Net as early as 2015, and had received interest from companies like PT Media Nusantara Citra, XL Axiata, and PT Indosat.
According to its website, Link Net was created in 1996 and provides high-speed internet and cable television to consumers throughout Indonesia. According to its first quarter business presentation, its services are connected to 2.7 million residences. In the three months ended March 31, it reported a net income of 249 billion rupiah, up 26% year on year./n
