The group said it and its 66.48% Indonesian subsidiary, PT XL Axiata Tbk, entered into a non-binding term sheet with Asia Link Dewa Pte Ltd and PT First Media Tbk "to facilitate discussions and negotiations for a potential acquisition" of 1.82 billion shares or a 66.03% shareholding in Link Net.
Earlier this month, Bloomberg reported that Axiata was in advanced talks for a stake in the Jakarta-based cable television and high speed broadband provider and that private equity firm CVC Capital Partners had been looking to exit the investment.
CVC invested in Link Net in 2011, according to a press release on the company's website.
Axiata told Reuters last year it was looking to buy a smaller rival in Indonesia in a share-swap deal to cut costs and competition in its biggest market.
(Reporting by Liz Lee; Editing by James Pearson)