Indonesian mobile operator XL Axiata and its parent, Axiata Group, have announced the signing of a non-binding term sheet to purchase 1.82 billion shares, or 66.03%, of domestic broadband ISP LinkNet. The two companies will buy the shares from existing LinkNet shareholders CVC Capital (via Asia Link Dewa) and PT First Media (the media arm of the billionaire Riady family’s Lippo Group), with XL Axiata corporate secretary Ranty Astari Rachman confirming: ‘When the takeover plan is complete, XL or XL and Axiata will become the new controlling shareholders of LinkNet and then carry out a mandatory tender offer’. Through the acquisition, Axiata hopes to develop and expand its business in Indonesia and better position the company in a fiercely competitive market.
As previously reported by CommsUpdate, last month Axiata held talks with the potential sellers and said at the time it was considering a number of options, including one that would see it buy a shareholding through XL Axiata itself. LinkNet, 36.99%-owned by CVC Capital and 29.04% by First Media, is worth IDR12.4 trillion (USD857 million) based on its closing share price on 5 July.