(Bloomberg) — Indonesian internet provider PT Linknet is considering selling a stake in its fiber-optic business to raise up to $500 million to fund expansion, according to people familiar with the matter. This was revealed by a person involved.
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A unit of Axiata Group, Malaysia's largest wireless carrier, is seeking advisors to assist with a potential sale, the people said, asking not to be identified discussing private information. It is said that there is a possibility of raising ~$500 million.
The review is preliminary and Linknet could decide against the deal, the people said.
An Axiata representative said Linknet needs the funding to accelerate its “fiber buildout,” but did not provide details on the size of the potential funding.
“Among many sources of funding, inviting investors to partner with us on this growth opportunity is one such funding source,” the spokesperson said.
Linknet declined to comment.
Read more: Malaysia's Axiata said to be considering options for Indonesian unit
As part of a non-binding agreement in December, Link Net agreed to transfer its fixed broadband business to Indonesian mobile operator PT XL Axiata.
Link Net's market value is approximately 3.5 trillion rupiah ($224 million). The company's stock price has fallen 43% in the past 12 months. XL Axiata rose 0.4% over the same period, while Axiata Group fell 16%.
–With assistance from Fathiya Dahrul.
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