Lippo's Link Net Acquired By XL Axiata For IDR 8.72 Trillion, This Is Said By The Grandson Of Conglomerate Mochtar Riady

John Riads. (Photo: Doc. Forbes Indonesia)

JAKARTA - Lippo Group stated that the sale of shares in PT Link Net Tbk (LINK) to PT XL Axiata Tbk (EXCL) and the Axiata Berhad Group is part of the company's consolidation and transformation efforts. Lippo Group Executive Director John Riady hopes that this acquisition can strengthen the balance sheet and raise fresh funds for other future investments.

XL Axiata has agreed with LINK's shareholders to take over 1.81 billion shares of LINK. This amount is equivalent to 66.03 percent of the total paid-up shares and issued capital.

The value of this takeover transaction reached IDR 8.72 trillion or equivalent to RM 2.54 billion. As of December 31, 2021, LINK's shareholders were Asia Link Dewa Pte. Ltd. 35.55 percent, Lippo Group through PT First Media Tbk (KBLV) 27.90 percent, UBS AG LDN BRANCH - UBS AG LONDON 6.28 percent, and the public 26.37 percent.

"LINK is a company that has bright prospects. Moreover, LINK has recorded a healthy financial performance, as can be seen from its minimal debt," said John Riady in a written statement, quoted Friday, January 28.

The grandson of conglomerate Mochtar Riady said that the moment of the COVID-19 pandemic was considered not to have shaken LINK's performance. During the first nine months of 2021, LINK recorded an increase in revenue of 10.34 percent year on year (yoy) to IDR 3.2 trillion with a net profit of IDR 686.9 billion, down 1.72 percent yoy.

However, according to John, the company needs a further and significant expansion strategy in working on the digital market in the country.

This is in line with LINK's business plan to always support and provide reliable high-speed connectivity services as well as the right information and communication technology solutions for various business needs of customers in all conditions.

"The services and solutions provided range from terrestrial connectivity services via fiber-optic lines to VSAT as well as cloud solutions, data centers, and other technology-based supporting devices," said John.

Previously, the XL Axiata Group stated that the acquisition of LINK's shares was in line with the development of the digital line from the XL Group. The acquisition process is believed to strengthen the company's business position.

"The purpose of the takeover plan is to develop business and expand business networks as well as to strengthen XL and Axiata's business position in the field of providing telecommunications services to customers," wrote PT XL Axiata Tbk Corporate Secretary, Ranty Astari Rachman in the IDX information disclosure in mid-December 2021.