Lippo/CVC pull LinkNet stake amid weak market

27 Jan 2016

Lippo Group, which is controlled by Indonesian billionaires the Riady family, and CVC Capital Partners Asia Pacific (through Asia Link Dewa), the two main shareholders in Indonesian cable television and broadband internet provider LinkNet, have decided to postpone the proposed sale of their combined 67.3% stake in the company, citing the weak economy as the reason, Reuters reports.

According to TeleGeography’s GlobalComms Database, in June 2015 Indonesian mobile operators XL Axiata and Indosat Ooredoo were said to be lining up alongside the country’s largest integrated media, broadcasting, entertainment and telecoms group, Global Mediacom (MNC Group), to take control of LinkNet, after the three firms expressed an interest in acquiring a majority stake in the Jakarta-based broadband operator. In September last year, however, MNC Group and XL Axiata reportedly dropped out of the process, leaving Indosat Ooredoo and new bidder Providence Equity Partners as the sole interested parties for the two companies’ majority stake. Following the outcome of the latest talks though, Indosat Ooredoo CEO Alexander Rusli has said his company is also considering dropping its bid.

Indonesia, Indosat Ooredoo (incl. IM2), LinkNet (First Media), XL Axiata