Axiata Group Berhad( “ Axiata ” or “ the Group ”) moment blazoned that it’s driving forward the structural metamorphosis of its Indonesian accessories, PT XL Axiata Tbk( “ XL Axiata ”) and PT Link Net Tbk( “ Link Net ”), to accelerate the strategic shift towards getting a ServeCo and a FibreCo.
This strategic move aims to bolster the position in optimising the openings within Indonesia’s underpenetrated Fixed Broadband( “ FBB ”) and Fixed Mobile Convergence( “ FMC ”) requests. XL Axiata and Link Net have reachednon-binding agreements, encompassing the transfer of Link Net’s FBB business including its 750,000 guests to XL Axiata and the roll out of an fresh 2 million new homes passed by Link Net, which will enable XL Axiata to deliver FBB and FMC services for its growing guests and the wider Indonesian community. Upon completion of the fresh 2 million roll- eschewal, Link Net will enable nearly6.5 million access to home passes as a leading noncommercial FibreCo.
XL Axiata and Link Net will do to set out a list agreement for the terms, which will be carried out in compliance with prevailing regulations, including that of the Financial Services Authority( OJK) related to related deals and material deals.
The common agreement marks an important corner for Axiata as it moves near to achieving strategic structural metamorphosis of XL Axiata and Link Net in Indonesia. The construction of substantial new homes passed by Link Net to support XL Axiata underscores its vital part as a leading FibreCo. likewise, the transfer of Link Net guests to XL Axiata will fortify XL Axiata’s position as a prominent ServeCo, fuelling the growth ambition of FBB and FMC immolations throughout Indonesia.
President Director & CEO of XL Axiata, Dian Siswarini states, Our confluence services continue to admit positive response from the public. The vast pick- up in demand for FBB and FMC services explosively affirms our strategic direction. We believe the collaboration between XL Axiata and Link Net will allow us to capture this lesser demand and drive the acceleration of growth of FBB and FMC services in Indonesia. By expanding our network structure and extending service vacuity, we will effectively reach the broader Indonesian community, feeding to their evolving confluence requirements and preferences for a suite of both fixed, mobile and happy services.
Dian adds, The transfer of Link Net’s substantial client base, which consists of around 750,000 subscribers to XL Axiata marks an instigative corner for us, as it vastly expands our client base for FBB and home entertainment services. Accordingly, this catapults XL Axiata to come the second largest FBB provider in Indonesia with 1 million guests. In line with our confluence strategy, this transition allows us to offer our new guests an array of products and services offered by XL Axiata, backed by our ever- expanding, high- quality network structure for enhanced flawless client experience. likewise, we’re in the process to explore a sculpt- out of our own erected last- afar fibre homes passed for better utilisation of means in line with our Asset Light Strategy.
Director & Acting CEO of Link Net, Kanishka Wickrama mentioned, We partake the same commitment as XL Axiata in offering the stylish FBB and FMC services to potentially millions of valued guests as we contemporaneously pursue the metamorphosis of Link Net into a leading FibreCo. Thenon-binding agreement to transfer Link Net’s retail business to XL Axiata will enable us to concentrate on our core moxie in network development, progressing towards achieving our thing to come a encyclopedically recognised FibreCo. also, the fresh 2 million homes passed to be rolled out for XL Axiata will fuel substantial growth for Link Net in the foreseeable future.
Group CEO & Managing Director of Axiata Group, Vivek Sood stated, As a married long- term investor, Axiata is encouraged by our progress in advancing Indonesia’s digital readiness, and in laying a strong foundation for a future-ready digital frugality, towards powering the technological metamorphosis in Indonesia. Our delayering strategy enables both operating companies to accelerate organisational dexterity, allow scalability, and maximise value. It’ll also bolster the capability to attract the applicable mates for each reality.
” Through this strategic approach, both XL Axiata and Link Net will expedite the growth eventuality of their separate businesses. XL Axiata stands to profit from expanded access to expansive fibre optics structure with minimal investment. Meanwhile, Link Net will concentrate its sweats on expanding structure to meet the thriving request demand, situating it for increased request significance. In due course, we will invite investors to mate with us in this growth occasion.
Over the coming two times, Link Net will enable6.5 million home passes for XL Axiata to make on the being 1 million guests, with a maturity to admit a gathered offer.” he adds.
With our strategic precedences easily outlined, Axiata will drive performance advancements and accelerate profitable growth across Indonesia and our other geographic vestiges to deliver on the full eventuality of our digital telcos, digital business and structure parts, supported by focused capital allocation. concluded Vivek.
This collaboration will streamline the access to ultraexpensive quality FBB and first- class confluence services, whereby the Indonesian community can now look forward to farther fortified client experience. likewise, this common trouble aligns with the government’s ideal of promoting digitalisation within the society, contributing to the nation’s technological advancement and digital metamorphosis.
