Axiata’s Link Net considering sale of stake in Indonesia fibre business
INDONESIAN Internet provider Link Net is considering selling a stake in its fibre business to raise as much as US$500 million to fund an expansion, according to sources with knowledge of the matter.
The unit of Axiata Group, Malaysia’s biggest wireless carrier, is seeking an adviser to help with a potential sale, which could raise US$400 million to US$500 million, the sources said, asking not to be identified discussing private information.
Considerations are preliminary and Link Net could decide against a deal, the sources said.
A representative for Axiata said Link Net requires capital to accelerate its “fibre build”, but did not provide details on the size of the potential fundraising.
“Amongst many sources of capital, inviting investors to partner with us in this growth opportunity is one such source,” the spokesperson said.
Link Net declined to comment.
As part of a non-binding deal in December, Link Net agreed to transfer its fixed broadband business to Indonesian mobile operator XL Axiata.
Link Net has a market value of about 3.5 trillion rupiah (S$300 million). Its share price has fallen 43 per cent over the past 12 months. XL Axiata is up 0.4 per cent over the same period and Axiata Group has dropped 16 per cent. BLOOMBERG
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