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SINGAPORE: Indonesian congolemerate Lippo Group has hired Bank of America's Merrill Lynch to advise on the potential sale of First Media, its cable TV and internet business, sources with direct knowledge of the deal said.
The group is looking to sell the business for US$400 million-US$500 million (RM1.23 billion-RM1.54 billion), more than twice the company's current market value of around US$184 million, according to one of the sources who asked not to be named because the deal is not public.
First Media competes against Indovision, a unit of Indonesian media company Global Mediacom in pay TV business. The company also has broadband internet service which competes against PT Telekomunikasi Indonesia and Indosat .
Lippo Group was not available for comment and Merrill declined comment.
Lippo — which owns property, healthcare, media and retail assets in Indonesia, Hong Kong and Singapore — has been restructuring its portfolio through either stake sales or outright sale.
First Media reported a net profit of 27 billion rupiah (RM9.22 million) in the first nine months of 2010, from a revenue of 605 billion rupiah. Its net profit during the period was 42% down from a year ago period.
Indonesia's broadband internet penetration is comparatively low and some analysts are expecting the sector to grow strongly in coming years.
Recently, Lippo put Matahari hypermarts' business for sale for US$1 billion, The second-round bids for Matahari hypermarts are due later in January, sources told Reuters.
Some industry experts say the move could be a part of Lippo's strategy to focus on its property and healthcare business.
In March, Lippo Group took sole control of Singapore hotel operator Overseas Union Enterprise (OUE) after buying out its partner Malaysian billionaire Ananda Krishnan in a deal valued at S$957 million (RM2.28 billion).
Later in 2010, Lippo raised as much as S$337 million from the sale of 120.5 million OUE shares. — Reuters
The group is looking to sell the business for US$400 million-US$500 million (RM1.23 billion-RM1.54 billion), more than twice the company's current market value of around US$184 million, according to one of the sources who asked not to be named because the deal is not public.
First Media competes against Indovision, a unit of Indonesian media company Global Mediacom in pay TV business. The company also has broadband internet service which competes against PT Telekomunikasi Indonesia and Indosat .
Lippo Group was not available for comment and Merrill declined comment.
Lippo — which owns property, healthcare, media and retail assets in Indonesia, Hong Kong and Singapore — has been restructuring its portfolio through either stake sales or outright sale.
First Media reported a net profit of 27 billion rupiah (RM9.22 million) in the first nine months of 2010, from a revenue of 605 billion rupiah. Its net profit during the period was 42% down from a year ago period.
Indonesia's broadband internet penetration is comparatively low and some analysts are expecting the sector to grow strongly in coming years.
Recently, Lippo put Matahari hypermarts' business for sale for US$1 billion, The second-round bids for Matahari hypermarts are due later in January, sources told Reuters.
Some industry experts say the move could be a part of Lippo's strategy to focus on its property and healthcare business.
In March, Lippo Group took sole control of Singapore hotel operator Overseas Union Enterprise (OUE) after buying out its partner Malaysian billionaire Ananda Krishnan in a deal valued at S$957 million (RM2.28 billion).
Later in 2010, Lippo raised as much as S$337 million from the sale of 120.5 million OUE shares. — Reuters
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