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Axiata exploring options for Indonesian units XL and Link Net, sources say

3 Nov 2022

Malaysia’s Axiata Group is understood to be mulling its options for its Indonesian operations – mobile operator XL Axiata and broadband services provider Link Net (First Media) – including the possibility of merging the two units. Bloomberg cites unnamed people with knowledge of the situation as saying that the Malaysian company is keen to improve synergies in its Indonesian assets and also suggested that one other option on the table would involve bringing in a minority investor for its infrastructure assets as it seeks to drive further investment and growth. Discussions are said to be at an early stage though and may not proceed to a concrete deal, according to the sources who declined to be identified due to the private nature of the topic.

As “previously reported by TeleGeography’s CommsUpdate”: https://www.commsupdate.com/articles/2022/06/23/xl-and-axiata-complete-link-net-acquisition/ in June 2022 Axiata Group and XL Axiata completed their acquisition of a 66.03% stake in 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%).

Indonesia, Axiata, Link Net (First Media), XL Axiata