Axiata Group was tipped to look to raise capital to speed its fibre rollout across Indonesia by selling a stake in broadband and cable-TV subsidiary Link Net.

Bloomberg reported the company could be looking to raise $400 million to $500 million, noting Axiata Group did not reveal what percentage it was considering selling.

The news agency noted talks are in an early stage and a deal could fail to materialise. 

Last month, XL Axiata outlined plans to consolidate Link Net’s fixed-line business into its operations, creating the second-largest broadband player in Indonesia.

In 2022, XL and its parent acquired a 66 per cent stake in Link Net for IDR8.7 trillion ($556.4 million).

XL faces fierce competition in the FTTH space from Indosat Ooredoo Hutchison, which acquired the customer assets of fibre-based service provider MNC Kabel Mediacom in 2023.

GSMA Intelligence estimates put XL on nearly 57 mobile subscribers at end-2013, compared with 159 million for Telkomsel and 101 million Indosat.