CVC to invest $269 million in Indonesia's First Media
JAKARTA (Reuters) - Private equity firm CVC CVC.UL will invest 2.35 trillion rupiah (165 million pounds) in the cable TV and internet units of Indonesian media firm PT First Media (KBLV.JK) in a strategic partnership deal, First Media said on Tuesday.
The deal marks the second investment by CVC in a Lippo Group firm and in Indonesia, after its $790 million purchase of a department store chain last year, and reflects investor interest to tap domestic demand in Southeast Asia's biggest economy.
First Media, controlled by Lippo Group, one of Indonesia's biggest conglomerates, said CVC will invest in PT Link Net, a unit that provides high-speed internet, cable pay TV and data communication services, and will get a 49 percent stake in the unit.
Shares in First Media surged as much as 24 percent after the announcement, and were trading 19 percent up at 1,000 rupiah by 0502 GMT, versus a Jakarta index .JKSE down 0.3 percent.
First Media said in January it had hired Bank of America Merrill Lynch (BAC.N) to conduct a strategic review of its business to help the company identify various strategy and growth opportunities, which came after sources told Reuters the Lippo Group had scrapped plans to sell the firm.
Lippo had aimed to raise about $400 to $500 million from a sale of their majority stake in First Media and gathered interest from firms including South Korean's SK Telecom Co (017670.KS) and KDDI Corp (9433.T), but the group scrapped the plan as bids were too low.
(Reporting by Janeman Latul and Fathiya Dahrul; Editing by Neil Chatterjee)
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