The purchase price values Link Net at approximately IDR 4,800 per share ($0.32) in or roughly IDR 8.72 trillion (equivalent to approximately RM 2.63 billion) for the 66.03% stake. This equates to a value of about IDR 13.21 trillion (equivalent to approximately RM 3.99 billion) for 100% equity interest in Link Net.
“We are very excited about the potential and possibilities this acquisition will unleash,’ said Dian Siswarini, president, director & CEO of XL Axiata.
‘Since the announcement, we have identified multiple areas of synergies that can be unlocked together with Link Net, leveraging our collective strength in mobile connectivity, fixed broadband and content. This will support us in achieving our vision to be a leading converged operator by providing seamless integrated solutions to our increasingly digitally-savvy customers.”
Following the closing of the deal, Axiata Investments, a subsidiary of Axiata, and XL Axiata hold 46.03% and 20% respectively from the combined 66.03% equity interest in Link Net2 previously held by Asia Link Dewa and PT First Media. This brings Axiata’s total effective equity interest in Link Net to 58.33% post completion of the acquisition.
“The completion of the Link Net acquisition marks a significant milestone in the evolution of Axiata’s operations in the region,’ said Dr Hans Wijayasuriya and Vivek Sood, joint acting group CEOs at Axiata.
‘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’.’
As a result of the transaction, Axiata is now obligated to undertake a mandatory tender offer to acquire the remaining 33.97% equity interest in Link Net4 subject to regulatory requirements in Indonesia. Details of this will be announced will be announced shortly and expected to complete in the Q3 of 2022.
With this acquisition, Link Net and XL Axiata will benefit from immediate synergies through their combined wireless communication services, sharing of backbone and transmission networks and customers in Indonesia. This combined with XL Axiata’s enterprise offerings which includes mobile connectivity, Link Net will be able to capitalise on growing enterprise market in the country.
“Together with our new partners we look forward to being able to provide converged fixed line broadband and mobile service propositions to both our residential and enterprise clients,’ said Marlo Budiman, president, director and CEO of Link Net.
‘There is opportunity for significant synergies from the sharing of backbone and transmission networks and strategic alignment on revenue enhancement and cost efficiency measures. These opportunities are enhanced by Link Net’s extensive relationships with business partners and customers.’
