PT Global Mediacom Tbk (IDX: BMTR), sets the private placement price Rp200 (US$0.013) a share and plans to issue as many as 700 million new shares in this month - Photo by MNC Group

JAKARTA (TheInsiderStories) – Indonesian pay TV operator, PT MNC Vision Networks Tbk (IDX: IPTV) eyes its competitors businesses in internet protocol television and broadband businesses, said the company last weekend. This action aims to add the company’ subscriptions.

The spokesman, Anthony C. Kartawiria said in an official statement, both parties had signed a non-disclosure agreement for the share purchase. However, he did not mention the name of the targeted company.

Based on the Indonesian Multimedia Providers Association data, there are several companies engaged in the IPTV sector such as state-owned company PT Telekomunikasi Indonesia Tbk (IDX: TLKM) with brand Usee TV, PT Biznet Multimedia with Biznet Cable TV services, Transvision controlled by tycoon Chairul Tanjung, and Lippo Group’ pay TV operator PT First Media Tbk (IDX: KBLV).

Last August, MNC Vision has completed the acquisition of 60 percent of the shares of K-Vision, which is a pay television operator with KU-band satellite technology. K-Vision has a customer focus on the lower middle market segment.

The agreement is considered to add 120,000 new customers per month, excluding the growth of customers from its three subsidiary companies, PT MNC Sky Vision Tbk (IDX: MSKY), MNC Play, and MNC Now.

According to MNC Vision’ president director Ade Tjendra, the company’ priority was to consolidate the industry by reducing the number of players in the market. In the end it is likely to significantly increase the company’s overall market share in the coming years.

Last July, the operator has been listed at the Indonesia Stock Exchange and raised Rp845.20 billion (US$59.94 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 Hary Tanoesudibjo company’ 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.

US$1: Rp14,100

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