CVC Capital Partners, First Media and other shareholders in Indonesian broadband and cable TV provider Link Net aim to raise up to Rp8.17trn (US$707.6m) from the sale of a 40% stake in the company.
The book-building process started today, with selling…
CVC Capital Partners, First Media and other shareholders in Indonesian broadband and cable TV provider Link Net aim to raise up to Rp8.17trn (US$707.6m) from the sale of a 40% stake in the company.
The book-building process started today, with selling shareholders offering about 1.22 billion shares in total at Rp6,200 to Rp6,700 (US$0.54 to US$0.58) per share, Jakarta-based ISP First Media said in an exchange filing.
First Media, which has a 41% stake in Link Net, will sell at least 334.7 million shares, equal to an 11% stake, and expects to become its single largest shareholder after the transaction.
London-based private equity firm CVC is Link Net’s largest shareholder with a 49% stake held via subsidiary Asia Link Dewa. Brokerage firm OCBC Securities has a 7% stake.
The shares will be sold via a private placement.
Nine cornerstone investors, including US fund managers BlackRock and Och-Ziff Capital Management, have already pledged US$257m in commitments, Reuters cited a source with direct knowledge of the matter as saying.
Goldman Sachs Investment Strategies, Malaysian investment firm CMY Capital, Neuberger Berman, William Blair, Morgan Stanley Investment Management and Columbia Wanger Asset Management are also among those who have agreed to buy shares, according to reports.
Goldman Sachs and Credit Suisse are the global coordinators for the sale, Bloomberg cited people with knowledge of the matter as saying. CIMB, Ciptadana Securities, BNP Paribas and Deutsche Bank are also reportedly working on the transaction.
Link Net, which first listed on the Indonesian Stock Exchange in June, has a market capitalisation of Rp21.6trn (US$1.89bn).
CVC describes Link Net as the second-largest fixed broadband and cable TV operator in Indonesia with a network passing more than 500,000 homes across Greater Jakarta, Surabaya and Bali.
