Indonesian media giant MNC Vision Network has struck a deal to acquire CVC Capital’s stake in local broadband and cable TV provider LinkNet, Deal Street Asia reports. In a regulatory filing, MNC Vision Networks confirmed the signing of a ‘term sheet’ to purchase a majority stake in LinkNet from CVC Capital’s local subsidiary Asia Link Dewa and Lippo Group-controlled First Media. The report also notes that in a separate filing, First Media has said it expects the transaction to be completed by all parties ‘within six months’. No financial details were disclosed.
CVC Capital first took a stake in LinkNet in 2011 when it paid USD275 million for shares and bonds (issued by parent company First Media), going on to up its stake in the following years. More recently, however, the private equity group and First Media have reduced their holdings, selling off around 30% of the ISP in 2014 via a USD454 million offering to leave CVC with around 33% and First Media with 26%.
The report goes on to note that the deal with the Indonesian media giant – which already has a presence in the internet segment through Media Nusantara Citra (MNC Media) unit MNC Kabel Mediacom (MKM) – ends CVC’s hunt to find a buyer for LinkNet. According to Bloomberg, last year Malaysia’s Axiata was interested in acquiring a roughly 40% stake in the Jakarta-based company, but that deal never materialised.