Jakarta (TheInsiderStories) – Indonesian pay television operator, PT MNC Sky Vision Tbk (IDX: MSKY) plans to conduct a private placement to raise funds of Rp847.6 billion or US$60.54 million, said the company today (09/17). The operator will release 906.53 million shares with an exercise price of Rp935 each.
Before carrying out a private placement on Sept. 23, 2019, the company will hold an extraordinary shareholders meeting on Sept. 19 to approve the program. The results of the private placement will be announced on Sept. 25.
MNC Sky Vision’ director Janis Gunawan said, the parent company, PT MNC Vision Networks Tbk (IDX: IPTV), was approaching with a number of strategic investors to absorb the new shares. As known, French company Vivendi SA and Hong Kong-based investment firm Argyle Street Management are interested in investing in Hary Tanoesoedibjo’ companies.
Vivendi’ broadcasting arm Canal+ Group is in early discussions to spend more than US$400 million purchasing two units of PT Global Mediacom Tbk (IDX: BMTR), or nearly half of PT MNC Vision Networks shares.
MNC Vision owns majority shares of MNC Sky Vision. Other than that, Canal+ is also negotiating to acquire 10 percent shares of the free-to-air television business PT Media Nusantara Citra Tbk (IDX: MNCN).
Separately, Argyle Street also expressed interest in buying around 49 percent of MNC Vision. the private equity firm planned to spend more money than Vivendi, around $550 million for its initial buying stage, 25 percent of MNC Vision stake.
The proceed from the private placement, said Gunawan, will use to finance this year’ capital expenditure with total amounts Rp600 billion. The operator aimed to develop th satellite-based pay TV businesses, which has covered various regions in the country.
Recently, its parent company, MNC Vision has completed the acquisition of 60 percent of other local pay TV’ K-Vision shares. K-Vision is a satellite broadcast service provider on KU-band frequencies that uses prepaid vocers with a focus on targeting the mid-low market segment.
This acquisition also consistent with MNC Vision‘ target to become the largest pay TV provider in Indonesia and will bring an additional 120,000 subscribers to MNC Vision per month. With this acquisition, the provider is now optimistic that it can reap the entire Pay-TV market in Indonesia, from big cities to inland areas.
This acquisition can also consolidate the industry by reducing the number of players in the market, which will significantly increase the company’ market share in the next few years.
Last July, MNC Vision has been listed at Indonesia Stock Exchange and raised Rp845.20 billion after offered 3.52 billion shares equal to 10 percent of the issued and fully paid capital with price Rp240 a share. Along with the initial public offering, the company also issued warrants, where each share is entitled to one warrant to purchase one share of the company for Rp288.
MNC Sky Vision was established in 1994 and provided 137 channel selection. In 1998, the company pioneered digital broadcasting via Indostar-I satellite by presenting Indovision as its PAY TV product. In 2007, the company launched a more affordable product called TopTV.
MNC Sky Vision offers local and international channels owned by Global Mediacom, which is also the owner of MNC, the largest media in Indonesia with four terrestrial national television channels (RCTI, GTV, iNews and MNCTV) newspapers, tabloids, magazines, radio networks in Indonesia.
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