CVC Capital Partners and First Media (JKT:KBLV) have received offers from a private equity firm and a strategic buyer for their combined 67.3% stake in Indonesian ISP Link Net (JKT:LINK).
CVC Capital Partners and First Media (JKT:KBLV) have received offers from a private equity firm and a strategic buyer for their combined 67.3% stake in Indonesian ISP Link Net (JKT:LINK).
Rhode Island-based Providence Equity Partners and leading local operator Indosat (JKT:ISAT) are the final two bidders, according to people familiar with the process.
Other interested Indonesian companies, which included local media giant MNC Group and smaller operator XL Axiata, were put off by the price tag, according to a Reuters report which broke the news.
CVC and First Media, which listed 30% of Link Net for about US$450m in October 2014, reportedly value their combined holdings at between US$875m and US$1bn. Freshfields, led by Stephen Revell, advised the sellers on the “re-IPO”, while Ciptadana Securities acted as lead underwriter.
Link Net, CVC, First Media, Providence and Indosat were not immediately available for comment.
CVC and First Media had initially sought to list 40% of the broadband and cable TV operator on Indonesia’s bourse for about US$650m, but scaled back amid weak investor demand, volatile markets, and concerns about reforms underway by the country’s then new President, Joko Widodo.
Various CVC funds invested US$275m in Link Net in June 2011 through a combination of primary shares in Link Net and bonds issued by PT First Media, the parent company of Link Net.
Link Net is Indonesia’s second largest fixed broadband and cable TV operator. CVC previously described the country as an “attractive, underpenetrated market, with significant barriers to entry”. CVC also highlighted the rising middle class as driving demand for broadband services.