UK-based private equity firm CVC Capital is to pay US$269m for a 49% stake in cableco and ISP Link Net, according to reports.
Link Net is a unit of media group First Media, which is controlled by local conglomerate the Lippo Group.
Merrill Lynch advised…
UK-based private equity firm CVC Capital is to pay US$269m for a 49% stake in cableco and ISP Link Net, according to reports.
Link Net is a unit of media group First Media, which is controlled by local conglomerate the Lippo Group.
Merrill Lynch advised First Media on a strategic review, which attracted South Korea’s SK Telecom and Japan’s KDDI Corp. Lippo had reportedly hoped to reap some US$400m- US$500m from a sale of its stake in the group.
First Media chairman Peter Gontha was cited saying that the transaction would enable the company to invest more heavily in much needed telecommunication infrastructure.
Last year, CVC bought a chain of department stores from Lippo for US$790m.
First Media provides broadband internet, cable and data communications, primarily in the Jakarta area.
Lippo Group was founded by Mochtar Riady, who got his start with Bank Lippo and property development.
Mobile operator XL Axiata is reportedly planning to issue 170 million new shares, or 2% of the company, as part of a management incentive programme. Tranches of shares will be issued in April each year until 2016. The company is majority owned by Malaysia’s Axiata Group, while Etisalat holds a 13% stake.
