Indonesian ISP Link Net is reportedly planning to raise up to US$500 million by selling a stake in its fibre business as it gears up to expand its network coverage.
According to a report from Bloomberg, citing anonymous sources, Link Net wants to raise funds to expand its network. The ISP has been looking for an adviser to help it sell shares worth between US$400 million and US$500 million, the report said.
The news comes a month after Link Net’s parent company, Malaysia-based Axiata group, announced that Link Net would transfer its fixed-broadband business to mobile operator XL Axiata and continue as a wholesale fibre company.
As part of the arrangement, Link Net is set to roll out fibre to pass an additional 2 million new homes, bringing its total coverage to 6.5 million homes passed.
An Axiata spokesperson told Bloomberg that Link Net needs capital to accelerate its “fibre build,” but gave no further details. The anonymous sources noted that Link Net has no firm plan and could abandon the idea of a sale.
In any case, the news bumped up Axiata Group’s share price 3.5% on Monday morning, its highest in five months, the report said.
