PT Link Net (LINK), a prominent player in Indonesia’s telecommunications sector, is considering a strategic move to sell shares in its fiber business, aiming to secure a substantial fund infusion of US$ 500 million (IDR 7.8 billion).
The funds are earmarked for the ambitious expansion plans of the company, and while no final decision has been reached, LINK is actively exploring this avenue, according to sources.
The potential sale is part of a broader corporate strategy and the company has not ruled out the possibility of abandoning the plan. The move is seen as a proactive measure to bolster LINK’s financial position and support its growth trajectory in the competitive telecom market.
The decision comes after Link Net’s agreement in December 2023 to transfer its fixed broadband business to PT XL Axiata (EXCL), a strategic move that aligns with industry trends and positions the company for future opportunities.
Axiata Group Berhad, the controlling shareholder of LINK, is reportedly seeking advisors for the potential sale, anticipating that it could raise between US$ 400 million to US$ 500 million.
A representative from Axiata highlighted the necessity for additional capital to expedite the deployment of LINK’s fiber network, emphasizing the significance of partnerships with investors for sustained growth.
At present, Link Net boasts a market value of approximately IDR 3.5 trillion, and the contemplated fundraising could further enhance its financial flexibility and market position.
Axiata Group Berhad and PT XL Axiata officially acquired a majority stake of 66.03 percent in PT Link Net last year, marking a significant development in Indonesia’s telecommunications landscape.
Link Net’s exploration of strategic financial moves reflects the dynamism and adaptability required in the rapidly evolving telecommunications industry. As the company navigates these strategic decisions, stakeholders are keenly watching the developments that could shape LINK’s future trajectory.
