Wellington Capital
Advisory
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
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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.
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Performed due diligence on 2 targets to identify key issues and opportunities on revenue growth and cost-reduction.
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Performed a distressed asset valuation and M&A model to identify customer synergy, economies of scale, and other core levers to driver ROIC.
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Negotiated key terms and covenants on term sheet with target shareholders.
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Identified future targets as part of SubNetCo’s roll-up strategy and both long-term executive & execution team members.