KONTAN.CO.ID - KUALA LUMPUR. Axiata Group Berhad and its Indonesian subsidiary PT XL Axiata Tbk have signed an agreement to jointly take a 66.03% stake in PT Link Net Tbk for $606.19 million, the Malaysia telecoms group said on Thursday.

The price tag on the deal has been agreed at IDR4,800 per ordinary Link Net share, or approximately IDR8.72 trillion ($606.19 million), equivalent to about 2.55 billion ringgit, the company said.

Under the terms of a conditional share purchase agreement with Asia Link Dewa Pte Ltd and PT First Media Tbk, Axiata Investments (Indonesia) Sdn Bhd, an indirect wholly-owned subsidiary of Axiata, and XL Axiata will buy 46.03% and 20% stakes respectively.

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Axiata Investments will then be required to undertake a mandatory tender offer to acquire the remaining shares in Link Net.

The deal values 100% equity interest in Link Net at about IDR13.21 trillion.

"By leveraging the strengths of our telco business from XL Axiata and Link Net's broadband and connectivity solutions, we look forward to delivering compelling customer-focused converged solutions for the home and enterprise segments as Indonesia continues to advance its digital economy," Axiata President and Group CEO, Izzaddin Idris said.

The proposed acquisition and proposed tender offer will be funded via a combination of internally generated funds and bank borrowings. They are expected to be completed in the third quarter of this year and are subject to regulatory and shareholder approvals.

Editor: Yudho Winarto