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ASEAN 2022
Part 50: Indonesia | Axiata Group Bhd
Axiata completes RM2.63bil Link Net acquisition
By Asila Jalil - June 22, 2022 @ 7:39pm

KUALA LUMPUR: Axiata Group Bhd and PT XL Axiata TBK (XL Axiata) has completed the acquisition of a 66.03 per cent stake in PT Link Net Tbk (Link Net) for RM2.63 billion.

In a statement, Axiata said the purchase price stood at 4,800 rupiah per Link Net share or about 8.72 trillion rupiah, which was equivalent to RM2.63 billion for the 66.03 part cent stake.

This valued Link Net at about 13.21 trillion rupiah or about RM3.99 billion.

Post-completion of the acquisition, Axiata Investments (Indonesia) Sdn Bhd (AII), an indirect wholly-owned subsidiary of Axiata, and XL Axiata will hold 46.03 per cent and 20 per cent stakes respectively from the combined equity interest in Link Net previously held by Asia Link Dewa Pte Ltd and PT First Media Tbk.

Axiata will now be obligated to undertake a mandatory tender offer (MTO) to buy the remaining 33.97 per cent in Link Net pursuant to regulatory requirements in Indonesia.

"Details of the proposed MTO will be announced in due course and is expected to be completed in the third quarter of 2022."

Axiata's joint acting group chief executive officers Dr Hans Wijayasuriya and Vivek Sood said the completion of the acquisition marked a significant milestone in the evolution of Axiata's operations in the region.

"As we welcome Link Net into the Axiata family, we strengthen our position as a regional digital champion in the delivery of converged telecommunication services in line with our ethos of 'Advancing Asia'.

"Link Net is among the leading providers of high-speed broadband and cable TV in Indonesia, reaching 2.9 million homes across 23 cities, serving approximately 855,000 broadband and approximately 837,000 cable TV customers respectively.

"The well experienced and accomplished team at Link Net will be accelerating the company's growth opportunities within existing as well as under-served areas," they said.

For the financial year ended December 31, 2021, Link Net's revenue rose 10.3 per cent year-on-year to about 4.5 trillion rupiah or RM1.3 billion.

https://www.nst.com.my/business/2022...et-acquisition