Lippo Group Pockets IDR 8.7 T Sell LINK to EXCL & Axiata Group – Archyde

Jakarta, CNBC Indonesia – Lippo Group received fresh funds of Rp 8.72 trillion after selling shares from PT Link Net Tbk (LINK) to PT XL Axiata Tbk (EXCL) and Group Axiata Berhad. This is part of Lippo Group’s corporate consolidation and transformation efforts.

Based on the information disclosure, XL Axiata Group has reached an agreement with LINK shareholders to acquire 1.81 billion shares. LINK shareholders include Asia Link Dewa Pte Ltd and Lippo Group through PT First Media Tbk (KBLV).

Lippo Group Executive Director John Riady said this corporate action is part of the consolidation and transformation strategy the company is undertaking to further strengthen the balance sheet and raise new funds for other future investments.

“We welcome the agreement reached in this corporate action. This move is our strategic effort in the consolidation and transformation that we are undertaking,” said John in a press release obtained by CNBC Indonesia on Thursday (1/27/2020).

The transaction value of XL Axiata Group’s acquisition of LINK shares reached around Rp. 8.72 trillion, or the equivalent of RM 2.54 billion. The number of shares acquired was around 66.03 percent of the total paid-up shares and issued capital.

John emphasized that LINK is a company with bright prospects. In addition, the company posted healthy financial performance, as evidenced by its zero debt. He revealed that the moment of the pandemic did not shake LINK’s performance.

However, John continued, the company needs a further and significant expansion strategy to work in the country’s digital market.

“This is in line with LINK’s business plan, which will continue to support and provide reliable, high-speed connectivity services as well as the right information and communication technology solutions for customers’ various business needs under all conditions. The services and solutions provided range from terrestrial connectivity services to fiber to VSAT, as well as cloud solutions, data centers and other technology-based supporting devices,” said John.

Earlier, XL Axiata Group stated that the acquisition of LINK’s shares is in line with the development of the digital line by XL Group and Lippo Group as one of the owners of LINK.

For XL, as noted by PT XL Axiata Tbk Corporate Secretary Ranty Astari Rachman, the acquisition process will strengthen the company’s business position.

“The purpose of the acquisition plan is to develop businesses and expand business networks, as well as strengthen XL’s and Axiata’s business position in the area of ​​providing telecommunications services to customers,” wrote Ranty Astari Rachman, corporate secretary of PT XL Axiata Tbk, in the IDX disclosure of information, mid-December 2021. .

[Gambas:Video CNBC]

(PS / PS)

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