CVC Capital agrees to sell stake in Indonesia’s Link Net to MNC Vision

Jakarta, Indonesia. Photo: Sopan Sopian/Pixabay

Private equity firm CVC Capital has reached an agreement to exit Indonesia broadband and cable TV provider Link Net by selling its remaining stake in the company to local media giant MNC Vision Network.

Link Net counts Lippo Group’s First Media and CVC Capital’s local subsidiary, Asia Link Dewa, among its major shareholders.

According to a filing by MNC Vision Networks, the company has signed a term sheet to acquire a majority stake in Link Net from both First Media and Asia Link Dewa. According to a separate filing by First Media, the deal is expected to be sealed by all parties involved within six months.

No financial details were disclosed in the document.

CVC became a shareholder in Link Net back in 2011 when it completed a $275-million investment in the company through a combination of primary shares in Link Net and bonds issued by parent company First Media. The company upped its stake in the company in the following years.

However, CVC and First Media have also divested their holding in Link Net, selling about 30 per cent of the company in 2014 through a $454-million offering, As of August 2018, CVC Capital Partners owns 33 per cent of Link Net while PT First Media holds 26 per cent, according to Bloomberg.

A deal with MNC ends CVC’s long search for a buyer for Link Net. One of the potential buyers that had been in talks to acquire the company, according to Bloomberg last year, was Malaysian wireless carrier Axiata, who was reportedly looking to purchase about a 40 per cent stake in the Jakarta-based company.

MNC Vision is a subsidiary of Indonesia-listed MNC, which claims to be the largest media group in Southeast Asia. It has a portfolio that includes four national free-to-air TV stations, which account for 46 per cent share of Indonesia’s ad-based television, in addition to 20 subscription-based channels, the country’s largest radio network and print media.

The acquisition of Link Net would add to the MNC ecosystem of internet-based businesses, as it looks to tap into innovations that are set to disrupt the conventional media channels. Earlier this year, the company announced an investment in Southeast Asia’s digital entertainment service iflix.

MNC Vision launched its IPO on July 8 wherein it raised a total of IDR 845.28 billion ($60.6 million).

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.