(Jan 22): Indonesian internet provider PT Link Net is considering selling a stake in its fibre business to raise as much as US$500 million (RM2.3 billion) to fund an expansion, according to people with knowledge of the matter.

The unit of Axiata Group Bhd, Malaysia’s biggest wireless carrier, is seeking an adviser to help with a potential sale, which could raise US$400 million to US$500 million, the people said, asking not to be identified discussing private information.

Considerations are preliminary and Link Net could decide against a deal, the people said. Link Net declined to comment.

A representative for Axiata said Link Net requires capital to accelerate its “fibre build,” but didn’t provide details on the size of the potential fundraising. “Amongst many sources of capital, inviting investors to partner with us in this growth opportunity is one such source,” the spokesperson said.

Axiata Group’s shares jumped 3.5% Monday morning, touching the highest in five months.

As part of a non-binding deal in December, Link Net agreed to transfer its fixed broadband business to Indonesian mobile operator PT XL Axiata.

Link Net has a market value of about 3.5 trillion rupiah. Its share price has fallen 43% over the past 12 months. XL Axiata rose 2.5% Monday.