On 27 June 2011, Funds advised by CVC Asia Pacific Limited completed its Rp2.35 trillion (US$275 mm) investment in PT Link Net ("Link Net" or the "Company") through a combination of primary shares in Link Net and bonds issued by PT First Media TBK ("First Media"), the parent company of Link Net. CVC also has an option to acquire additional shares in Link Net, which will allow CVC to increase its stake in the Company to 49%.
The transaction is the largest completed private equity investment in Southeast Asia this year. It demonstrates CVC's ability to execute large and complex transactions and its strong commitment to the region. Link Net is CVC's second investment in Indonesia following Matahari Department Stores in 2010, and its sixth investment in Southeast Asia in the last four years.
Link Net is the second largest fixed broadband and cable TV operator in Indonesia. Its network passes over 500,000 homes across Greater Jakarta, Surabaya and Bali. With its high quality HFC network, strong operational capabilities and an experienced management team, Link Net is well positioned to continue its market leadership, expand its network coverage and enhance its service offering.
Commenting on the transaction, Peter Gontha, Executive Chairman of First Media said, "We are delighted and excited about the completion of the transaction. The partnership with a leading institutional investor marks a milestone not only for First Media but also for Indonesia, particularly in respect to attracting high quality investment opportunities into the country."
Sigit Prasetya, the CVC Partner responsible for its investments in Southeast Asia, said "We are committed to support the growth of Link Net and accelerate its investment in the network infrastructure to deliver high speed internet access and differentiated content to the broader Indonesian consumers. We are honoured to have the opportunity to work with First Media and Lippo Group in this strategic endeavour."
CVC was advised by Citigroup, Allen & Gledhill LLP and HBT.