Axiata Group Berhad is moving ahead with its structural transformation of its Indonesian subsidiaries, PT XL Axiata Tbk and PT Link Net Tbk towards becoming a ServeCo and a FibreCo.
XL Axiata and Link Net will proceed to set out a binding agreement for the terms, which will be carried out in compliance with prevailing regulations, including that of the Financial Services Authority related to affiliated transactions and material transactions.
The joint agreement marks an important milestone for Axiata as it moves closer to achieving strategic structural transformation of XL Axiata and Link Net in Indonesia. The construction of substantial new homes passed by Link Net to support XL Axiata underscores its pivotal role as a leading FibreCo. Furthermore, the transfer of Link Net customers to XL Axiata will fortify XL Axiata’s position as a prominent ServeCo, fuelling the growth ambition of FBB and FMC offerings throughout Indonesia.
The group said the aim is to optimise the opportunities within Indonesia’s underpenetrated Fixed Broadband and Fixed Mobile Convergence markets. XL Axiata and Link Net have reached non-binding agreements, encompassing the transfer of Link Net’s FBB business including its 750,000 customers to XL Axiata and the roll out of an additional 2 million new homes passed by Link Net, which will enable XL Axiata to deliver FBB and FMC services for its growing customers and the wider Indonesian community. Upon completion of the additional 2 million roll-out, Link Net will enable nearly 6.5 million access to home passes as a leading wholesale FibreCo.
Axiata adds that over the next two years, Link Net will enable 6.5 million home passes for XL Axiata to build on the existing 1 million customers, with a majority to receive a converged offer.” he adds.
