CVC eyes IPO for Indonesian cable operator LinkNet - report

According to The Wall Street Journal, LinkNet's IPO will raise as much as $200 million. The float is expected to represent a small portion of the overall company.

LinkNet provides fixed-broadband and cable services to more than 500,000 homes in Greater Jakarta, Surabaya and Bali. CVC paid $275 million for a 33.94% stake in the company in 2011, with the option of increasing its holding to the 49% foreign ownership ceiling. The Riady family's Lippo Group owns the remainder.

The Matahari deal in 2010 also came about through ties with Lippo. CVC took a 72.6% stake in the asset, which accounted for the bulk of parent company Matahari Putra Prima's majority stake. The two parties agreed to enter into a partnership structure, with Lippo-controlled Putra Prima placing its entire holding into a joint venture, of which it owns 20% to CVC's 80%.

While Matahari was already publicly traded, the float was only 1.8% of the company. The CVC-Lippo joint venture then sold 1.1 billion shares in March for around $1.3 billion.

Indonesia's public markets have been strong so far this year, with Mitra Pinasthika Mustika - a motorcycle retailer in which Saratoga Capital and Affinity Equity Partners hold a significant minority stake - recently raising $150 million.

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• Topics
• Exits
• Southeast Asia
• Consumer
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• Indonesia
• Southeast Asia
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• TMT
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• CVC Capital Partners