JAKARTA (TheInsiderStories) - The media company owned by the Lippo Group, PT Link Net Tbk (IDX: LINK) prepared a capital expenditure around Rp3.1 trillion (US$214 million) to add a high-speed internet network in 2021, the issuer said on Monday (11/09). The company is targeting an additional 250,000 new home passed in the 2021 - 2022 period.
The provider also exploring strategic investors who intend to acquire its shares. Four investors, said the operator have been in the due diligence process to acquire a majority stake in the publicly listed firm. The two investors came from Malaysia and other from Japan.
President director and CEO of Link Net, Marlo Budiman, said in a media briefing, that his party ensures that the due diligence process with a number of potential strategic investors continues. However, he has not been able to mention the timeline of the final agreement of the share sale.
Last May, media provider, PT MNC Vision Networks Tbk (IDX: IPTV) abort its plan to acquire LinkNet, backed by Luxembourg’ private equity firm CVC Capital and PT First Media Tbk (IDX: KLBV). Last December, Hary Tanoesudibjo’ company announced to buy the majority stakes in the local broadband and cable TV provider.
Based on an official statement on May 4, First Media’ spokesman, Harianda Noerlan, disclosed that at April 30 there was no definitive agreement on a final deal by the partiesboth sides the previous December. First Media, which is backed by the Indonesian conglomerate Lippo Group, holds 27.90 percent in LinkNet while CVC indirectly owns 35.55 percent through PT Asia Link Dewa.
CVC first took a stake in LinkNet in 2011 with worth of US$275 million for shares and bonds issued by its parent company. The provider intends to continue its network expansion and has set aside Rp2 trillion ($133.33 million) in capital expenditure for 2020 to extend its operational footprint in Yogyakarta, Cirebon, Cikampek, Purwakarta, Tegal, Madiun and Kediri.
In terms of expansion, the issuer continues to explore new cities in order to attract more customers. This year, the company has build home passed network in Bali, Cirebon, Cikampek, Purwakarta, Tegal, Yogyakarta and Kediri.
In the third quarter of 2020, Link Net has added 30,679 new home passed in various cities, bringing in total 2.65 million users. 68 percent of the network is located in surrounding Jakarta, 19 percent in Surabaya in East Java and Bali. Bandung and Semarang took 8 percent share. While Medan and Batam 5 percent.
He explained that various factors will boost internet business opportunities in the future, such as Indonesia’ large and young population base, a growing economy, and a wider internet user base. In the third quarter of 2020, Link Net acquired 147,000 new customers.
In total, the unit of Lippo’ internet users reached 816,000 from 668,000 customers at the end of last year. At the same period, the company shareholder composition was Asia Link Dewa Pte. Ltd., hold 35.55 percent, First Media 27.90 percent, UBS AG London branch 6.46 percent, public 26.19 percent, and treasury shares 3.90 percent.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
