Malaysia’s Axiata Group and its Indonesian mobile subsidiary XL Axiata have announced the completion of their acquisition of a 66.03% stake in Indonesian ISP Link Net (First Media) for IDR8.72 trillion (USD610 million). As per the terms of the purchase agreement with 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 was carried out through Axiata Investments (Indonesia), an indirect wholly-owned subsidiary of Axiata which will hold 46.03%, and XL Axiata (20.00%).
In January this year XL Axiata and its parent struck a deal to take a joint 66.03% stake in Link Net, noting that once completed, Axiata Investments will be obliged to conduct a mandatory tender offer (MTO) for all Link Net’s remaining shares. ‘Details of the proposed MTO will be announced in due course and is expected to be completed in the third quarter of 2022,’ the parties confirmed.
The deal was funded through a combination of internal resources and borrowings, and made it over the finishing line despite a stumble last month when 42.17% of Axiata Group’s shareholders – including Permodalan Nasional – voted against the proposed acquisition amid concerns on the possible impact on dividends, as well as on the structure of the acquisition of both Axiata and XL.