In a strategic partnership deal to infuse expansion capital, private equity firm CVC has committed to invest £165 million (2.35 trillion Rupiah) in the cable TV and internet arms of Indonesia’s PT First Media, a spokesman of First Media said today.
The present deal is CVC’s second investment in Indonesia and the Lippo Group company, the first being an investment of $790 million for the purchase of a departmental store chain. The combined investment of over $1 billion indicates the PE firm’s confidence in the growth opportunities of Southeast Asia’s biggest economy.
Lippo Group is one of Indonesia’s biggest conglomerates and CVC will acquire a 49% percent stake in PT Link Net, an unit of First Media offering high-speed internet, data transmission and Cable TV services in the domestic market.
Shares prices of First Media jumped by 24 percent in the Jakarta Stock Exchange after the announcement before settling at about 19 percent higher than Monday’s close.
Lippo Group had initially planned to sell off First Media and later scrapped the plan. It then announced in January of its decision to hire Bank of America Merrill Lynch for conducting a strategic review of its businesses for future growth prospects.