Axiata Group and its Indonesian subsidiary XL Axiata have signed a non-binding agreement to acquire a 66.03% holding in Indonesian broadband provider LinkNet.
The Axiata firms are buying 1.82 billion shares from current LinkNet shareholders CVC Capital and PT First Media (part of Lippo Group), although no total amount has been confirmed. The remaining third of LinkNet is listed publicly on the Indonesian stock exchange, obliging a tender offer to minority shareholders if a new party assumes control over the unit.
XL Axiata corporate secretary Ranty Astari Rachman confirmed: “When the takeover plan is complete, XL or XL and Axiata will become the new controlling shareholders of LinkNet and then carry out a mandatory tender offer.”
CommsUpdate reports that Axiata is mulling several purchase options, including acquiring a shareholding via XL Axiata. The acquisition is aimed at helping the company to increase its presence in Indonesia and become more competitive in the market.