JAKARTA - PT XL Axiata Tbk (EXCL) will reportedly lease hybrid fiber coaxial and fiber to the home (HFC/FTTH) of PT Link Net Tbk (LINK) worth IDR 11.06 trillion. Combined with ServeCo business line acquisition, or residential business (B2C) line, worth IDR 1.87 trillion, thus bringing total transaction to IDR 12.94 trillion.

According to the issued prospectus quoted Wednesday (11/9), the value of HFC and FTTH lease, plus ServeCo acquisition, is equal to 48.11% of total equity of EXCL as of June 2024 worth IDR 26.90 trillion.

EXCL and LINK are indeed affiliated, sharing the same controller, Axiata Group Berhad (AGB), via Axiata Investments (Indonesia) Sdn. Bhd. (AII). AII is the controller of 66.247% of EXCL’s shares and 76.42% of LINK’s shares. In addition, EXCL also owns 19.22% of LINK.

This transaction had previously been approved by the board of directors on April 23, 2024, and amended on August 27, 2024. This transaction was then greenlit by the board of commissioners on April 29, 2024, and amended yesterday (10/9).

As is known, on May 22, 2024, EXCL and LINK had signed a parent entity service agreement to install, integrate, and lease HFC and FTTH network for the next 10 years. In addition, the effective period is extendable by 5 years, according to mutual agreement. (LK/ZH)