Private equity group seeks USD200m from LinkNet IPO

6 Jun 2013

Dow Jones Newswires writes that private equity group CVC Capital Partners is hoping to raise up to USD200 million from the initial public offering (IPO) of Indonesian fixed broadband and cable TV provider LinkNet. People familiar with the matter say that the full details and timing of the IPO have still to be decided.

According to TeleGeography’s GlobalComms Database, in June 2011 CVC Capital Partners Asia Pacific completed the acquisition of a minority stake in LinkNet. The private equity firm purchased a 33.94% stake in the telco for IDR1.63 trillion (USD191 million), with an option to raise its holding to 49%. Following the acquisition LinkNet is still 51% owned by First Media, its parent company. CVC’s purchase formed part of a wider IDR2.35 trillion investment with First Media under which the latter received IDR722 billion for a bond instrument. LinkNet operates in three strategic markets in the country: Greater Jakarta, Surabaya and Bali. Its telecoms and TV services cover a population of 37 million and around 500,000 households. The telco owns and operates the largest two-way hybrid fibre-coaxial (HFC) cable domestically, delivering high speed internet access services to retail and business customers, including the delivery of data communication services over its fibre-optic lines, and cable TV services.

Indonesia, LinkNet (First Media)