Malaysian telecoms group Axiata Group Bhd has proposed to acquire 66.03 percent stake in PT Link Net Tbk, a cable TV and internet service provider in Indonesia.

Axiata and its 66.48 percent subsidiary, PT XL Axiata Tbk, have entered a non-binding term sheet with Asia Link Dewa Pte Ltd and PT First Media Tbk to facilitate discussions and negotiations for a potential acquisition of 1.82 billion shares or 66.03 percent stake in Link Net, the group said in a regulatory filing on Friday.

Link Net is engaged in telecommunication activities by cable, internet service provider, communication system services, network access point services, other multimedia services, telephony value-added services, trading, management consultancy activities, and call center activities, according to its annual report.

The group currently provides services through a broadband communication network including distribution of television programs and high-speed internet through the network in Jakarta, Bogor, Tangerang, Bekasi, Surabaya (include Malang and Gresik), Bali, Bandung, Medan, Batam, Solo, Semarang, Serang and Cilegon areas.

Link Net is domiciled in Jakarta and started its commercial operations in 2000. All Link Net’s shares have been listed on the Indonesian Stock Exchange on June 2, 2014, according to the filing.

Quoting people with knowledge of the matter, Bloomberg reported last month that Axiata was in advanced talks to buy a stake in Link Net.

Private equity firm CVC Capital Partners holds a 36 percent stake in Link Net while First Media owns a 28 percent stake in the company, according to the report. CVC Capital said it has completed its investment in Link Net in 2011, a statement on its website showed.

Within ASEAN and South Asia, Axiata has controlling stakes in several mobile and fixed operators in the region including Celcom in Malaysia, XL in Indonesia, Dialog in Sri Lanka, Robi in Bangladesh, Smart in Cambodia, and Ncell in Nepal.

Axiata Digital, the digital services arm of Axiata is focused on two digital business verticals namely Digital Financial Services (Boost, Aspirasi) and Digital Analytics & AI (ADA).

The group’s infrastructure arm edotco, operates in eight countries to deliver telecommunications infrastructure services, amassing approximately 32,800 towers. It is currently the 16th largest independent tower company globally.

Featured image credits: Axiata