JAKARTA (TheInsiderStories) – Indonesia’ telco company, PT Smartfren Telecom Tbk (IDX: FREN) will exchange the mandatory convertible bond (MCB) into Series C shares on Sept. 22 with total amount Rp3.4 trillion (US$229.73 million). The amount lowers than the operator initial targets worth of Rp8 trillion.
The issuer had issued MCB Rp8 trillion in 2014 and 2017. It said, the number of the conversion as much as 42.5 percent of 80 billion shares prepared for the MCB.
The bondholders of MCB Rp3 trillion issued in 2014 are PT Dian Swastatika Sentosa Tbk (IDX: DSSA), PT Dian Ciptamas Agung, Panama’ Boquete Group SA, PT Nusantara Indah Cemerlang, PT Andalan Satria Permai, PT DSSE Energi Mas Utama, and Singapore’ Hilmas Coal Pte., Ltd. Then, for 2017′ MCBs are Cascade Gold Ltd., Dian Swastatika Sentosa, Boquete Group, and PT Nusantara Indah Cemerlang with total amount of Rp5 trillion.
The implementation of this conversion is related to Smartfren‘ plans to increase its issued and paid-up capital from Rp28.14 trillion to Rp36.14 trillion. This year, the company has budgeted a capital expenditure around $260 million. Until the first semester of 2020, the company has absorbed $180 million of the funds for network expansion.
This year, the parent, Sinar Mas Group through the provider have secured loans from the China Development Bank worth RMB1.58 billion ($227.99 million). The signing of the loan was made on Jan. 21, 2020, with maturity until 2026. The company prepared a capital expenditure of around $250 million in this year.
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.
This revenue came from the data business of Rp3.91 trillion and non-data revenue of Rp226.52 billion. Then, the interconnection income was Rp61.69 billion and other income was Rp101.83 billion.
As of June 30, Smartfren‘ shareholder are PT Global Nusa Data 36.6 percent, PT Wahana Inti Nusantara 22.3 percent, PT Bali Media Telecommunication 14.8 percent and public 26.3 percent.
US$1: Rp14,700, RMB6.93
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