KUALA LUMPUR (July 30): Axiata Group Bhd has proposed the acquisition of a 66.3% stake in PT Link Net Tbk, an internet service and cable television provider in Indonesia. 

Axiata said it and its 66.48%-owned Indonesian unit PT XL Axiata Tbk have signed a non-binding term sheet with Indonesia’s PT First Media Tbk and Asia Link Dewa Pte Ltd to initiate negotiations for a potential acquisition of the Link Net stake.

The parties will use their best endeavours to negotiate in good faith and execute a definitive agreement, subject to the fulfilment of conditions to signing, the telecoms group said in a Bursa Malaysia filing today. 

“If the definitive agreement is signed and subject to the fulfilment of the condition precedent under the definitive agreement, this will result in a change of control in Link Net. 

“[Following this], Axiata and/or XL will be required to conduct a mandatory tender offer to purchase the remaining shares in Link Net pursuant to Regulation on Acquisition of Public Companies issued by the Indonesian Financial Services Authority,” said Axiata. 

According to Link Net’s annual report, the company provides cable, internet service communication system services, network access point services, telephony value added services, trading, management consultancy activities and call centre activities. 

“The group currently provides services through a broadband communication network including distribution of television programmes and high-speed internet through the network in Jakarta, Bogor, Tangerang, Bekasi, Surabaya (include Malang and Gresik), Bali, Bandung, Medan, Batam, Solo, Semarang, Serang and Cilegon areas.  

“Link Net is domiciled in Jakarta and started its commercial operations in 2000. All of Link Net’s shares have been listed on the Indonesian Stock Exchange on June 2, 2014,” Axiata added.  

Shares in Axiata closed 11 sen or 2.86% lower at RM3.73 today, giving the group a market capitalisation of RM34.21 billion.