JAKARTA (TheInsiderStories) – After get new shareholder, telco operator, PT Smartfren Telecom Tbk (IDX: FREN) prepared capital expenditure around US$300 million in this year, said finance director on Monday (01/12). The Sinarmas Group’ unit is estimating will depend on external funding for the expansion needs and to pay the maturing debts throughout 2021.
Finance director of the provider, Antony Susilo, as quoted by Investor Daily, the new unit of PT Dian Swastatika Sentosa Tbk (IDX: DSSA), aimed to improve the service quality, after received an additional 10 megahertz of spectrum from the government at the end of last year.
Recently, information and communication ministry has picked Smartfren, PT Telekomunikasi Selular, and Hutchison 3 Indonesia (Tri) go to the next 2.3 gigahertz of 2360MHz – 2390MHz spectrum tender. The other participants, PT Indosat Ooredoo Tbk (IDX: ISAT) and PT XL Axiata Tbk (IDX: EXCL) has been declined.
To help the operator, its parent has exchanged the mandatory convertible bond (MCB) with 26 billion new series C shares of Smartfren. The total conversion worth of Rp2.6 trillion (US$184.39 million). After the transactions, Dian Swastatika hold 12.7 percent stake in the cellular operator.
Susilo stated that as many as three bondholders had converted their notes with 34 billion new shares of the company on Sept. 22, 2020. Boquete Group SA also participated in the MCB conversion with 2 billion shares of the provider.
After this action, Smartfren still has the remaining 46 billion series C shares which the holders of the MCB could exchange at any time. Other parties that hold the MCBs are PT Dian Ciptamas Agung, PT Nusantara Indah Cemerlang, PT Andalan Satria Permai, Hilmas Coal Pte. Ltd., and Cascade Gold Ltd. The notes was issued in 2014 and 2017 with total amount Rp3 trillion and Rp5 trillion, respectively.
As of the first semester of 2020, Smartfren still recorded a net loss that swelled by 14 percent to Rp1.22 trillion compared to the same period last year which also saw a net loss of Rp1.07 trillion. But the revenues up 41.98 percent to of Rp4.3 trillion over the same period the previous year. The revenue came from the data business of Rp3.91 trillion, non-data revenue of Rp226.52 billion, interconnection income was Rp61.69 billion, and other income was Rp101.83 billion.
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