Indonesia’s weak economy forces CVC, Lippo to delay plans to exit Link Net

Visual sourced from the website.

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 StoreMPHB/ 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).

 

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.