SubNetCo

Investment size

USD 100 - 150 Million

Transaction type

Distressed assets, roll-ups

Exit strategy

IPO or trade sale

Investment description

The fiber optic network segment in Indonesia were ripe for consolidation and WCA had identified a value creation opportunity of at least 2 distressed targets through M&A. One target was one of the very few that held the license to own and operate Jakarta-Singapore subsea fiber optic infrastructure with high quality network and large capacity; another target had over 2,500 km fiber backbone throughout the Sumatra region that was well-positioned for expansion.

WCA value creation

  • Advised on one of the largest sovereign wealth funds in the world in assessing fiber optic opportunities in Indonesia, identifying 2 potential targets, and capital requirements.

  • Performed due diligence on 2 targets to identify key issues and opportunities on revenue growth and cost-reduction.

  • Performed a distressed asset valuation and M&A model to identify customer synergy, economies of scale, and other core levers to driver ROIC.

  • Negotiated key terms and covenants on term sheet with target shareholders.

  • Identified future targets as part of SubNetCo’s roll-up strategy and both long-term executive & execution team members.

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