Indonesian mobile operator XL Axiata and its parent, Axiata Group, have struck a deal to take a joint 66.03% stake in domestic fixed broadband ISP Link Net (First Media) for IDR8.72 trillion (USD606.19 million), the Malaysia-based group confirmed on 27 January; the figure prices each Link Net share at IDR4,800. Under the terms of a conditional purchase agreement with existing Link Net shareholders CVC Capital (via Asia Link Dewa) and PT First Media (the media arm of the billionaire Riady family’s Lippo Group), the transaction will be carried out through Axiata Investments (Indonesia), an indirect wholly-owned subsidiary of Axiata which will take 46.03%, and XL Axiata (20.00%). Once completed, Axiata Investments will be obliged to conduct a mandatory tender offer for all Link Net’s remaining shares. The deal is being funded through a combination of internal resources and borrowings and is expected to complete in 3Q22, subject to regulatory and shareholder approval.
Commenting on the deal, Axiata President and Group CEO, Izzaddin Idris, said: ‘By leveraging the strengths of our telco business from XL Axiata and Link Net’s broadband and connectivity solutions, we look forward to delivering compelling customer-focused converged solutions for the home and enterprise segments as Indonesia continues to advance its digital economy.’