JAKARTA (TheInsiderStories) – PT MNC Vision Networks Tbk (IDX: IPTV), a cable TV operator owned by Indonesian tycoon Hary Tanoesoedibjo, plans to issue new shares as much as 2.46 billion to pay off its unit’ debt, said the company today (07/28). Its estimated that this operator will reap Rp848.13 billion (US$58.49 million) in fresh funds from the program.
This assumption is based on the issuer’ stock price perched at Rp 344 per share as of today. Based on the prospectus issued today, the operator stated that the proceeds from the rights issue will be used to pay off the loans of PT MNC SKY Vision Tbk (IDX: MSKY) and PT MNC Kabel Mediacom also to increase the working capital of the MNC Kabel.
MNC Vision will seek approval of this corporate action in an extraordinary shareholders meeting held today. Shareholders who do not exercise their rights will certainly experience a maximum dilution of 6.54 percent.
The company, which has a business focus on pay TV, fixed broadband and digital content services, officially took the floor at the Indonesia Stock Exchange in 2019. At that time, a subsidiary of the MNC Group set a price of Rp240 per share.
When listing the initial public offering (IPO), MNC Vision released 3.52 billion shares or 10 percent of the issued and fully paid up capital, where each share is entitled to one warrant to purchase one share of the company at a price of Rp288 per unit. The company obtained funds of Rp845.20 billion from this corporate action.
After listing the shares, PT Global Mediacom Tbk (IDX: BMTR), as the holding company, still retains 90 percent ownership in the company. French’ Vivendi SA or Hong Kong’ Argyle Street reportedly took part in the absorption of the IPO.
Vivendi reportedly plans to own 50 percent of the company shares owned by the Tanoesudibjo family in stages. For the first phase, Vivendi will invest 20 percent and the rest will be executed through an initial sahama offer. This action is estimated to be worth around $500 million.
Last year, the operator completed the acquisition of 60 percent of the shares of another cable TV provider, K-Vision, which is a pay television operator with KU-band satellite technology and focuses on middle to lower class customers.
The agreement is considered to add 120,000 new customers per month from the Group, excluding growth in customers from its three subsidiaries, MNC Sky Vision, MNC Play, and MNC Now. According to the CEO, Ade Tjendra, the company’ priority is to consolidate the industry by reducing the number of players in the market.
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