Jakarta (TheInsiderStories) – The pay TV operator, PT MNC Vision Networks Tbk (IDX: IPTV) has completed the acquisition of 60 percent of K-Vision’ shares, said the management on Thursday (08/29). After the deal, its expected will become a strategic fit for the company to expand their businesses.
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.
President Director Ade Tjandra stated, K-Vision will be a major addition to the company’ business portfolio and it could provide a wider diversification of services in terms of segments and geographies. This acquisition also consistent with MNC Vision‘ target to become the largest pay TV provider in Indonesia.
The acquisition will bring an additional 120,000 subscribers to MNC Vision per month, above the subscriber growth of three existing subsidiary entities, MNC Vision (DTH – S band service), MNC Play (IPTV & broadband), and MNC Now (MNC Now ( OTT – TV services anywhere).
Furthermore, 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’s market share in the next few years.
Last July has been listed at Indonesia Stock Exchange and raised Rp845.20 billion (US$59.53 million) after offered 3.52 billion shares equal to 10 percent of the issued and fully paid capital with priceRp240 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.
After the IPO, PT Global Mediacom Tbk (IDX: BMTR) as the holding company still retains 90 percent of controlling shares in IPTV before the warrants. Assuming all warrants are implemented, its parent still control 80 percent of the company shares.
By IPO, French’ Vivendi SA or Hong Kong’ Argyle Street would probably take some of MNC Vision shares, as management chose to not disclose the investor’ name and called it secrecy. MNC Vision’ parent company is now in negotiations process over the investment.
Vivendi was reported planning on having 50 percent of MNC Vision shares in stages. For the first stage, Vivendi will invest 20 percent and the rest will be executed through IPO. The action is estimated to value around $500 million.
He revealed, this public offering is a strategic step of the company in order to strengthen the capital structure where the proceeds from the public offering will be used for working capital. MNC Vision aimed to grab the middle to lower market segments that want more choices of FTA TV channels with better quality, he adds.
MNC Vision through its subsidiaries has an average experience of more than 20 years in the media industry. Its subsidiaries are PT MNC Sky Vision, PT MNC Cable Mediakom, PT MNC OTT Network, and PT Nusantara Vision.
Written by Staff Editor, Email: firstname.lastname@example.org