The Malaysia telecoms group said on Thursday that Axiata Group Berhad and its Indonesian subsidiary PT XL Axiata Tbk have signed an agreement to jointly take a 66.03 per cent stake in PT Link Net Tbk for US $606.19 million. The deal's price tag has been agreed on Thursday by IDR 8.72 trillion US $606.19 million, or about 2.55 billion ringgit.
Axiata Investments Indonesia Sdn Bhd, an indirect wholly-owned subsidiary of Axiata, and XL Axiata will buy 46.03 per cent and 20 per cent stakes under the terms of a conditional share purchase agreement with Asia Link Dewa Pte Ltd and PT First Media Tbk.
Axiata Investments will be required to take a mandatory tender offer to acquire the remaining shares in Link Net.
The deal values 100 per cent equity interest in Link Net at about IDR 13.21 trillion.
As Indonesia continues to advance its digital economy, Izzaddin Idris said, by leveraging the strengths of our telco business from XL Axiata and Link Net's broadband and connectivity solutions, we look forward to deliver compelling customer-focused solutions for the home and enterprise segments.
The proposed tender offer is funded by a combination of external funds and bank borrowings. They are expected to be completed in the third quarter of this year and are subject to regulatory and shareholder approvals.