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ublicly listed cable television company PT First Media is planning to sell part of its stake in its subsidiary PT Link Net in the fourth quarter of the year in a bid to boost the latter's performance.

Prior to selling 16 percent of its stake in Link Net, First Media, which also provides broadband internet connection, will hold an extraordinary general shareholders' meeting on Oct. 8 to gain approval.

First Media owns 1.24 billion shares in Link Net, or about 41 percent of the latter's total 3.04 billion shares, while the public owns 10 percent and Asia Link Dewa Pte. Ltd. controls 49 percent.

According to a prospectus published on Monday, the price of Link Net will be based on the highest average daily value of its stock in the 90 days from June 2 to Sept. 4.

Based on calculations, the highest average price was Rp 5,972 per share, meaning the stake will be valued at Rp 2.9 trillion (US$247.6 million).

First Media corporate secretary Harianda Noerlan said, however, he could not confirm the exact value of the transaction yet.

'We still need to carry out the book-building process and further calculation of the sum to be offered to First Media,' he told The Jakarta Post on Monday.

According to the prospectus, First Media is expected to book a comprehensive profit of Rp 7.87 trillion after the sale, a leap from Rp 107.13 billion in June this year.

The company will also post Rp 9.51 trillion in total assets, up from Rp 5.55 trillion in June, while its current assets will increase from Rp 1.37 trillion to Rp 3.72 trillion.

The rising value of the current assets will be caused by an increase in the company's cash and cash equivalents from Rp 624.93 billion in June to Rp 3.09 trillion after the sale.

Non-current assets will increase from Rp 4.17 trillion in June to Rp 5.79 trillion after the sale.

The statement also revealed that the company would post an increase in equity value from Rp 2.08 trillion to Rp 8.29 trillion.

According to Harianda, the rationale behind First Media's plan to divest its shares in Link Net was to increase the liquidity of Link Net, which currently has a low proportion of publicly held shares.

The statement said that the increase of minority shares in Link Net would lead to greater liquidity due to a bigger investor base, which would provide ease during a time when the company needed a rights issue.

The prospectus also mentions that the increase in publicly held shares would prompt Link Net's management to continue improving the company's business quality and performance.

In June, Link Net raised Rp 484.4 billion from the sale of Rp 304 million shares at Rp 1,600 a piece in an initial public offering (IPO), which reduced First Media's share ownership to 56.06 percent from 66.06 percent.

The company is aiming for a 20 percent increase in net revenue from last year's Rp 1.66 trillion, which was a 27.7 percent gain on the Rp 1.3 trillion in 2012.