Link Net

Link Net to Acquire PT First Media Tbk for $360 Million

Overview

Link Net, a leading broadband and cable television provider in Indonesia, has announced plans to acquire PT First Media Tbk (First Media), a cable television and broadband provider, for an estimated $360 million.

The acquisition, which is subject to regulatory approvals, is expected to create one of the largest broadband and cable television providers in Indonesia, with a combined subscriber base of over 2.5 million.

Transaction Details

Under the terms of the agreement, Link Net will acquire all of First Media's outstanding shares for a total consideration of IDR 5.3 trillion ($360 million).

The acquisition will be funded through a combination of Link Net's existing cash on hand and new debt financing.

Strategic Rationale

The acquisition is expected to bring several benefits to Link Net, including increased scale, enhanced network infrastructure, and expanded product offerings.

By combining First Media's operations with its own, Link Net expects to gain a stronger foothold in the Indonesian broadband and cable television market and enhance its competitiveness against other major players.

Market Impact

The acquisition is expected to have a positive impact on the Indonesian telecommunications market.

The combined entity will create a more formidable competitor to the incumbent telcos, Telkom Indonesia and Indosat Ooredoo, and could lead to increased competition and lower prices for consumers.

Financial Implications

The acquisition is expected to be accretive to Link Net's earnings per share in the long term.

Link Net expects the acquisition to generate significant cost synergies and revenue growth opportunities, which should offset the increased debt financing required to fund the transaction.