October 13, 2014 / 4:15 AM / 5 years ago

UPDATE 2-CVC, First Media cut Indonesia's Link Net stake as Och Ziff, BlackRock buy

* CVC offers up to $346 mln stake, First Media $206 mln

* Link Net shares offered in 6,200-6,700 rupiah/each range-terms

* Shares of Link Net more than quadrupled since mid-May IPO (Adds cornerstone investors, benchmark stock performance)

By Fransiska Nangoy and Elzio Barreto

JAKARTA/HONG KONG, Oct 13 (Reuters) - Private equity firm CVC Capital Partners and Indonesian internet and cable operator PT First Media plan to sell up to $668 million in shares in broadband provider PT Link Net Tbk in what would be Jakarta’s biggest stock sale in over 18 months.

The sale, announced on Monday, will allow Link Net’s biggest investors to cash in on a surge that has seen the network provider’s stock price quadruple since a mid-May initial public offering as more and more Indonesian households go online. Link Net expects sales to grow 20 percent in 2014 as it adds up to 250,000 new homes.

CVC, First Media and two other minority shareholders are offering 1.22 billion of shares in Link Net in an indicative range of 6,200-6,700 rupiah apiece, according to a term sheet of the deal seen by Reuters.

The deal received commitments worth $257 million from nine cornerstone investors including fund manager BlackRock Inc. , hedge fund firm Och-Ziff Capital Management Group LLC and Goldman Sachs Investment Strategies, said a source with direct knowledge of the matter who couldn’t be named because details of the deal aren’t public.

Malaysian investment firm CMY Capital and U.S. fund managers Neuberger Berman and William Blair & Co. were also among the cornerstone investors, the source added.

At the upper end of the range, the sale would be worth 8.15 trillion rupiah ($668 million). The deal would be the biggest in Indonesia since CVC and other shareholders sold a $1.48 billion stake in PT Matahari Department Store Tbk in March 2013.

Shares of Link Net were down 0.4 percent in early afternoon trading in Jakarta, giving the company a $1.8 billion market capitalisation. The benchmark Jakarta Stock Exchange Composite Index was down 0.6 percent.

First Media said in a securities filing it will sell 334.69 million shares, equivalent to an 11 percent stake in Link Net. CVC is selling 629.8 million shares through Asia Link Dewa Pte Ltd, according to the term sheet.

As of June, First Media, the media arm of Indonesian conglomerate Lippo Group, held 41 percent of Link Net. First Media said it will be the single largest shareholder in Link Net after all transactions are completed.

CIMB, Ciptadana Securities, Credit Suisse and Goldman Sachs were hired to manage the selldown. (1 US dollar = 12,197.0000 rupiah) (Editing by Kenneth Maxwell and Stephen Coates)

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