Axiata Group teamed with its Indonesia unit to commit to acquiring a majority interest in broadband and cable-TV provider Link Net for IDR8.7 trillion ($604.8 million), to expand its digital services in a high-growth region.
XL Axiata and its parent agreed to acquire respective stakes of 46 per cent and 20 per cent from Asia Link Dewa and First Media.
Axiata president and group CEO Izzaddin Idris stated the move will enable it to offer converged services in Indonesia.
Link Net president director and CEO Marlo Budiman explained the nation’s “high-speed broadband market remains deeply underpenetrated”, presenting an opportunity for future growth.
Budiman highlighted “significant synergies from the sharing of backbone and transmission networks and strategic alignment on revenue enhancement and cost efficiency measures”.
The company’s services reach 2.8 million homes across 23 cities in Indonesia, with a subscriber base of about 860,000.
Completion of the proposed deal is expected in Q3, subject to standard conditions including regulatory and shareholder approvals.Subscribe to our daily newsletter Back