CVC to take 49% stake in First Media TV, broadband unit

22 Mar 2011

Reuters reports that private equity firm CVC has agreed to invest USD269 million in a 49% stake in the cable TV and internet business of Indonesia’s First Media (formerly Broadband Multimedia). First Media, controlled by the Lippo Group, said CVC will purchase a 49% stake in Link Net, a unit that provides high speed internet, cable pay-TV and data communication services. Peter Gontha, First Media’s chairman, said of the deal: ‘This will allow us to invest more heavily in much needed telecommunication infrastructure.’ First Media said in January it had hired Bank of America Merrill Lynch to conduct a strategic review of its business to identify strategic opportunities, and had aimed to raise USD400-USD500 million from a sale of its majority stake in First Media, but the group saw prospective bids from firms such as South Korea’s SK Telecom and Japan’s KDDI as too low. The deal with First Media marks the second investment by CVC in the Lippo Group, one of Indonesia’s biggest conglomerates, and in the country itself, after its USD790 million purchase of a department store chain last year.

Indonesia, First Media