Axiata in talks for stake in CVC-backed Link Net

Discussions are progressing among Axiata and the potential sellers, private equity firm CVC Capital Partners and PT First Media, an arm of the billionaire Riady family’s Lippo Group conglomerate, the sources said.

KUALA LUMPUR: Axiata Group Bhd, Malaysia’s biggest wireless carrier, is in advanced talks to buy a stake in Indonesian Internet provider PT Link Net, according to sources.

Discussions are progressing among Axiata and the potential sellers, private equity firm CVC Capital Partners and PT First Media, an arm of the billionaire Riady family’s Lippo Group conglomerate, the sources said.

Axiata is weighing options on the potential deal structure including buying the stake via its Jakarta-listed unit PT XL Axiata, the sources said.

There’s no certainty the discussions with Axiata will lead to a transaction.

Representatives for Axiata, CVC, First Media, Link Net and XL Axiata declined to comment. Link Net has a market value of 12.4 trillion rupiah (US$857mil or RM3.6bil) based on its closing price on yesterday.

CVC Capital Partners owns 36% of Link Net while PT First Media holds 28%, data compiled by bloomberg show.

CVC and First Media considered divesting a majority stake in Link Net as early as 2015 and had attracted interest from companies such as PT Media Nusantara Citra, XL Axiata and PT Indosat, sources said at the time. —Bloomberg