JAKARTA (IndoTelko) - PT Link Net Tbk (Link Net) announce that it has successfully entered into an agreement to acquire a Java Intercity fiber backbone from PT Ketrosden Triasmitra.
Link Net President Director and CEO, Irwan Djaja along with his board of management hosted PT Ketrosden Triasmitra management, CEO Titus Dondi, CFO Vidcy Octory and COO Dani Samsul for signing ceremony, yesterday.
During the event, in response to queries from the audience, the management also provided additional insights into its strategy.
The company expects that it continues the expansion via strategic and targeted network expansion to attractive metropolitan areas within high GDP cities in Indonesia. Management plans to expand its network to 2.8 million homes passed by the end of 2021. The roll out will be done via continued network extensions along with strategic partnerships with selected property developers.
The Company’s investment in the Java intercity fiber backbone will give it instant access to 43 new cities in Indonesia. Management believes that access to this network asset will facilitate its strategy of targeted growth and expansion beyond the Company’s existing footprints into more cities on Java Island.
Given the existing Company’s strong cash flow, the expansion plans highlighted above are expected to be funded via internally generated cash flows.
The management also plans to propose an increase in its dividend payout ratio to a target of 50% of Net Profit, as compared to the 2016 dividend payout ratio of 35%. The Company sees strong growth potential in its business and believes that its expansion plans paired with its targeted increased dividend payments provides further clarity on its disciplined capital management strategy and is intended to provide shareholders with both growth and dividend income.
Irwan Djaja, President Director and CEO, commented on the strategy, and said: “The Java intercity fiber backbone will provide our company with multiple expansion options and provide a wider pathway for growth for years to come. We’ll continue to invest in all areas of our business to ensure that we provide a superior user experience for our customers while rewarding our shareholders with profitable growth”.(es)