Axiata, Indonesian unit acquire majority stake in cable provider Link Net

Malaysian operator Axiata Group Bhd. and its unit PT XL Axiata Tbk completed the acquisition of a 66.03% stake in Indonesian cable service provider PT Link Net Tbk for 4,800 rupiah per share, or about 8.72 trillion rupiah.

The acquisition price is based on a value of 13.21 trillion rupiah for the entire equity interest in Link Net, the companies said June 22.

Of the acquired stake, Axiata subsidiaries Axiata Investments (Indonesia) Sdn Bhd and XL Axiata will hold 46.03% and 20%, respectively, translating to an effective equity interest of 58.33% for Axiata in Link Net. The stake sellers are Asia Link Dewa Pte. Ltd. and PT First Media Tbk.

The transaction will allow Link Net to expand further into the enterprise sector while combining with XL Axiata to boost its market standing in wireless services, share network infrastructure and improve customer service.

Axiata Investments Indonesia will now be required under Indonesian regulatory requirements to launch a mandatory tender offer for the remaining 33.97% stake it did not already own in LinkNet, with the offer expected to be completed in the third quarter of 2022.

Link Net, which offers pay TV, high-speed internet, and data communications services, relies on a network spanning Greater Jakarta, Bali, Sumatera Island, West Java, Central Java and East Java.

Axiata reportedly had been eyeing a stake in Link Net since July 2021. Link Net's earlier suitors included Indonesian media company PT MNC Vision Networks Tbk.

As of June 22, US$1 was equivalent to 14,824.00 Indonesian rupiah.