Axiata gets shareholder nod for Indonesia’s Link Net stake buy
JAYA: Axiata Group Bhd has received the green light from 58% of its shareholders for the proposed acquisition of a 66% stake in Indonesia’s PT Link Net Tbk for 8.72 trillion rupiah (Rm2.6bil).
Axiata group chairman Tan Sri Shahril Ridza Ridzuan said the remaining 42% of shareholders that voted against the deal were concerned with the impact of the acquisition on the group’s balance sheet.
“We took our time to explain to the shareholders that the balance sheet is manageable,” he said at a briefing after the group’s AGM.
Link Net is a cable television and highspeed broadband Internet service provider based in Indonesia.
Axiata president and group chief executive officer Datuk Izzaddin Idris said the acquisition will enable the group to strengthen its market position, reinforcing its strategic move into the under-penetrated fixed broadband market and fuel its Indonesian expansion.
On Jan 27, Axiata and its Indonesian unit XL Axiata said they had signed a conditional share purchase agreement to acquire Link Net from Asia Link Dewa Pte Ltd (ALD) and PT First Media Tbk (FM).
Under the terms of the agreement, Axiata Investments (Indonesia) Sdn Bhd, an indirect wholly-owned subsidiary of Axiata, and XL Axiata will acquire a 46.03% and 20% stake, respectively, from the combined equity interest of 66.03% in Link Net held by ALD and FM.
“Through the proposed acquisition, Axiata seeks to capitalise on the fast-growing fixed broadband market and enterprise market segments in Indonesia, as well as creating significant synergies for Link Net and XL Axiata through sharing of networks and extensive relationships with customers in Indonesia,” Axiata said in a statement.
On 5G, Izzaddin said the group is trying its best to meet the June 30 deadline set by the government to sign contracts and take up shares in Digital Nasional Bhd, a special-purpose vehicle for 5G rollout.
He added that currently, there are nine mobile network operators that had been invited to the process including the top four telcos.
The group had also launched its Net Zero Climate Action Roadmap at the AGM with the aim of achieving net-zero emissions by no later than 2050.
Axiata has a near-term target to reduce operational emissions by 45% from its 2020 baseline by 2030.
“Our net-zero carbon pathway to reach our goal encompasses a three-objective strategy including carbon emissions reduction, avoidance and removal,” it said.
Guided by the roadmap, Izzaddin said the group will embark on a three-pronged strategy to accelerate the decarbonisation of its network operations, accelerate the transformation of its value chain and deliver an inclusive climate agenda.