The plans of private-equity firm CVC Capital Partners Ltd and Indonesia based PT First Media, the media arm of Indonesian conglomerate Lippo Group, to sell their majority holding in PT Link Net – an Indonesian broadband and pay TV operator, and fashion an exit, have been further delayed.
Both CVC and PT First Media Tbk have been exploring the option to sell their combined 67.3 per cent stake in Link Net for over a year now.
According to a report, that quotes the company’s spokesperson, PT Link Net Tbk has put on hold the sale of a majority stake, until the economy improves.”The slowdown in Indonesia’s economy has made it more difficult to strike a deal,” Liryawati, investor relations director at Link Net, is quoted as stating in this report from international news wire Reuters.
This portal had reported in June last year, citing sources that at least three local investors and a few foreign investors had shown interest to acquiring Link Net shares. These had included – media operator PT Media Nusantara Citra (MNC) Group and two cellular operator PT Indosat that is owned by Qatar’s operator Ooredoo QSC and PT XL Axiata controlled by Axiata Group Bhd, Malaysia’s largest wireless provider.
The report also added that CVC had appointed Credit Suisse Group AG, Deutsche Bank AG and Goldman Sachs to help manage the sale of shares.
CVC had invested Rp2.35 trillion ($176.69 million) in 2011 through a combination of primary shares (in Link Net) and bonds (issued by First Media). It also has an option to acquire additional shares in Link Net, which will allow CVC to increase its stake in the company to 49 per cent.
The PE firm, together with other shareholders, had partial exited Link Net when they had divested 30 per cent in the company for $450 million in October 2014.
LinkNet currently offers services to over 1.5 million homes across Greater Jakarta, Bandung, Surabaya and Bali.
CVC Asia Pacific has been one of the most active private equity investors in the region and is currently investing dedicated Asian funds of approximately $6.8 billion. Its current Asia Pacific portfolio includes Matahari Department Store, MPHB/ Magnum (the leading lottery operator in Malaysia), Sun Hung Kai (Hong Kong’s leading retail brokerage house and consumer finance company) and Zhuhai Zhongfu (China’s largest beverage packaging company).