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STOCK MARKET - JAKARTA. PT Link Net Tbk (LINK) is reportedly considering divesting shares in its fiber optic business. This discourse is considered to be a positive catalyst for this Axiata Group entity.
Bloomberg reported, Axiata Group Bhd. is looking for advisors to launch the sale of Link Net's fiber optic business. The plan is, LINK will get US$ 400 million–US$ 500 million.
According to Bloomberg sources, this sale discourse is still in the early stages so there is still potential for this First Media internet manager to cancel or even not continue the plan to divest these shares.
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The plan is that this fresh fund will be used for Link Net's expansion. According to Axiata, LINK needs capital to accelerate the fiber build segment.
“Among many sources of capital, inviting investors to partner with us in this growth opportunity is one of them,” said an Axiata Group spokesperson.
Kontan.co.id has tried to confirm with Link Net management. But until this writing was published there has been no response or response from Link Net.
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Investment Analyst Stockbit Securities Arvin Lienardi said if this divestment discourse is realized, it will be a positive catalyst for Link Net's valuation.
"This is considering the potential sale of Rp 7.8 trillion is 116% higher than LINK's current market capitalization at the level of Rp 3.6 trillion," Arvin explained in his presentation, Monday (22/1).
Until the end of trading on Tuesday (23/1), LINK strengthened 2.41% to the level of Rp 1,275 per share. However, so far this year, LINK has still weakened by 3.77%.
