First Media to sell 15% of Indonesia’s Internux (Bolt!) in Q3

14 Jul 2015

Indonesia’s First Media (formerly Broadband Multimedia), the media arm of local conglomerate the Lippo Group, is planning to sell a 15% stake in its local wireless broadband business PT Internux via an initial public offering (IPO) in Q3 2015. First Media is the majority 70.2% shareholder of PT Mitra Mandiri which owns Internux, the brand manager of Bolt!, which offers 4G Time Division-Long Term Evolution (TD-LTE) broadband wireless services to around 1.4 million Indonesians in the areas of Jakarta, South Tanggerang, Bekasi and Bantan. The stock market filing did not disclose how much the group aims to raise from the IPO.

According to TeleGeography’s GlobalComms Database, in May this year First Media confirmed plans to boost the profile of its 4G wireless broadband brand Bolt! this year, via investment of between IDR500 billion and IDR700 billion (USD38.1 million and USD53.3 million). First Media’s vice president Irwan Djaja said at the time that the amount forms part of a total IDR1.5 trillion CAPEX for 2015, and will be used to ‘expand the service penetration of Bolt! in Medan, North Sumatra and the northern region of Sumatra, as well as other regions’.

Separately, First Media is also in the process of selling off its stake in internet services provider (ISP) LinkNet and hopes to decide on a buyer in August, Reuters reports. TeleGeography notes that last month, Indonesian mobile operators XL Axiata and Indosat were believed to be lining up alongside the country’s largest integrated media, broadcasting, entertainment and telecoms group, Global Mediacom (MNC Group), for control of local ISP LinkNet. The three firms have expressed an interest in acquiring a majority stake in Jakarta-based broadband operator LinkNet, the sale of which is being led by its two main shareholders, Lippo Group and CVC Capital Partners Asia Pacific (through Asia Link Dewa). The two collectively own a combined 67.3% stake in LinkNet valued at about USD824 million based on the firm’s June share price. Under local rules, any Indonesia-based enterprise gaining control of a listed company must submit an offer to buy out other minority shareholders.

Indonesia, First Media, Internux (Bolt!), LinkNet (First Media)