LinkNet Officially Annexed by XL Axiata
The company released 1,81 billion shares with a value of Rp8,72 trillion
PT Link Net Tbk (IDX: LINK) was officially annexed by PT XL Axiata Tbk (IDX: EXCL) and Axiata Berhad. The company released 1,81 billion shares with a value of Rp8,72 trillion.
In his official statement, Executive Director of Lippo Group John Riady said that this share divestment is one of the transformation strategies to strengthen the balance sheet and raise fresh funds for other investments in the future.
Currently, LinkNet shares are controlled by Asia Link Dewa Pte Ltd and Lippo Group through its subsidiary PT First Media Tbk (IDX: KBLV). The number of shares issued was 1,81 billion shares or representing 66,03% of the total paid-up shares and issued capital.
"LinkNet has bright prospects. Moreover, the company recorded a healthy financial performance even during the Covid-19 pandemic, which was reflected in its zero debt. However, the company needs a further and significant expansion strategy to work on the digital market in Indonesia," he said.
LinkNet will strengthen -based connectivity services fiber optics and high-speed VSAT, ICT solutions to meet customers' business needs, such as cloud and data center, and other technology-based supporting devices.
Strengthen business fiber optics
As is known, XL Axiata is indeed being boosted network development fiber optics in Indonesia to meet the needs of the B2B segment network. This has become XL Axiata's business diversification strategy to a fixed network (fixed connectivity).
"The purpose of this share acquisition is to develop and expand the business network, as well as strengthen the position of XL and its parent company in the telecommunications services sector," said XL Axiata Corporate Secretary Ranty Astari Rachman as quoted from the IDX's information disclosure.
Currently XL provides services broadband based fiber optics through XL Home and XL Satu Fiber products. In the XL Satu Fiber product, this service is a combination of services fiber optics and cellular that can be used simultaneously.
The company mentions the number of houses that the network has passed fiber opticshas reached as many as 650.000 homes in Indonesia. As of the third quarter of 2921, XL has built 153 thousand BTS networks, including 69,9 thousand 4G BTS networks.
Previously, the Chairperson of the All-Indonesian Telecommunications Operators Association (ATSI) Ririek Adriansyah projected that the overall telecommunications industry's revenue growth would be 3% on an annual basis. In detail, the connectivity business is estimated to grow by 4%, the Technology, Information, Communication (ICT) business by 8%, and the digital business by 12% in the 2020-2024 period.