Heaptalk, Jakarta — XL Axiata announced its plan to acquire Linknet‘s residential (B2C) business unit for Rp1.87 trillion, approximately US$116.37 million (US$1 equals Rp16,069) (05/25). This transaction includes the purchase of the residential business unit, including rental activities for approximately 3,300,000 homes passed.
This move is expected to expedite XL Axiata’s vision of becoming the leading convergence operator in Indonesia, enhance fixed broadband (FBB) penetration, and capitalize on the FBB market opportunities, which still have low penetration but exhibit growing demand trends.
Furthermore, XL Axiata hopes that the acquisition of Linknet’s business can accomplish potential efficiencies from the collaboration between mobile and FBB networks, improve service quality for customers, and provide a seamless experience through easily accessible and evenly distributed integrated services.
According to information disclosed on the IDX, both parties signed the B2C business transfer agreement on May 22, 2024. Linknet’s B2C business includes an internet service provider (ISP), IPTV, and PayTV, along with related services such as cloud storage, gaming, and smart home customers.
Following Axiata Group Berhad’s structural transformation
“The objects of the affiliate transaction are all rights and interests in, from, and over ServeCo that will be transferred by Linknet to the Company under the business transfer agreement and services to be performed by Linknet,” explained XL Axiata management as reported by CNBC Indonesia.
In addition, the two companies also agreed on a master service agreement under which Linknet will install, integrate, and lease HFC/FTTH networks and other facilities to XL Axiata and provide HFC/FTTH services according to the technical specifications, service levels, and compliance requirements set out in the agreement.
Previously, Axiata Group Berhad undertook a structural transformation of its subsidiaries in Indonesia, namely XL Axiata and Linknet, to accelerate strategic changes into ServeCo and FibreCo. This move aims to strengthen their position in optimizing opportunities in Indonesia’s Fixed Broadband (FBB) and Fixed Mobile Convergence (FMC) markets, which still have low penetration.
In this step, XL Axiata and Linknet agreed to transfer Linknet’s FBB business, including 750,000 Linknet customers to XL Axiata. Additionally, the construction of a new network for 2 million homes passed by Linknet will be utilized by XL Axiata to provide FBB and FMC services to customers. After completing these additional 2 million homes passed, Linknet will have availability for up to 6.5 million homes passed.
