Axiata Group and its Indonesia unit XL acquired a 66.03 per cent stake in Link Net for IDR8.7 trillion ($114.8 million), with plans to tap the experience of the largest broadband internet and cable-TV provider in the country to accelerate growth in urban and under-served areas.
Hans Wijayasuriya and Vivek Sood, Axiata’s joint acting group CEOs, stated the stake acquisition strengthens its position as a regional digital champion in delivering converged telecommunication services.
“Increasing the momentum of our participation in Indonesia’s rapidly advancing digital economy is an exciting proposition we share with the Link Net team.”
Link Net president director and CEO Marlo Budiman stated it looks “forward to being able to provide converged fixed-line broadband and mobile” services to residential and enterprise customers.
“Indonesia’s high-speed broadband market remains deeply underpenetrated, and the ability to provide a wider and more comprehensive product offering will contribute to future growth and benefit all our stakeholders.”
Link Net’s network coverage reaches about 2.9 million homes across greater Jakarta, Sumatra Island, West Java, Central Java, East Java and Bali, serving about 855,000 broadband and 837,000 cable-TV customers.
It also has around 2,400 enterprise customers.
The group’s subsidiaries Axiata Investments and XL now own respective stakes of 46.03 per cent and 20 per cent in Link Net previously held by Asia Link Dewa and First Media.
Local regulations require the investment subsidiary to make a proposed mandatory tender offer to acquire the remaining 33.97 per cent equity interest in Link Net.
The company stated it expects to complete the move by Q3, with details of the offer to be released soon.Subscribe to our daily newsletter Back