JAKARTA (TheInsiderStories) – Indonesia’ pay TV and broadband service company, PT MNC Vision Networks targets Rp856 billion (US$59.86 million) through an initial public offering (IPO) that will be listed on 8 Juli 2019.
MNC Vision’ President Director Ade Tjandra said that he would offer a maximum of 3,522 billion shares equal to 10 percent of the issued and fully paid capital.
With a price range of Rp231 – Rp243 a share, the company owned by Indonesian famous tycoon Hary Tanoesoedibjo has the potential to reap fresh funds from the exchanges ranging from Rp814 billion to Rp856 billion.
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.
“The results of this offering will also be carried out for the development of fixed broadband/IPTV networks and the development of digital content services including through the production of interesting original content,” Tjandra said during a public presentation in Jakarta on Monday (06/17).
The company will also target the middle to lower market segments that want more choices of FTA TV channels with better quality (local FTA channels and international FTA channels) through the sale of products in the front and also the mid-market TV segment subscribing to prepay.
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 (MNC Vision), PT MNC Cable Mediakom (MNC Play), PT MNC OTT Network (MNC Now), and PT Nusantara Vision (NV).
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’s name and called it secrecy.
MNC Vision’ parent company, PT Global Mediacom Tbk (IDX: BMTR) is now in negotiations process over the investment. Investor Relations of Global Mediacom Marshall Pheri said the positive discussion is consistently ongoing with several potential parties. They also have signed initial requirements and conditions document, which is part of the due diligence process.
MNC Vision must be listed in the stock exchange as a way to have foreign investment. According to regulation, foreign ownership in Indonesia’s media industry is limited up to 20 percent. But there’ a different condition for a public listed company which there is no limitation.
Previously, two investors are named to put its capital in MNC Vision Networks. They are Vivendi or Argyle Street. 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.
Vivendi’ Canal+ planned to invest in two Global Mediacom’s ancillaries that work in paid-tv and internet services. Other than that, Canal+ is also negotiating to purchase 10 percent of PT Media Nusantara Citra Tbk (IDX: MNCN) shares. It doesn’t stop there. Canal+ will also buy 25 percent of Global Mediacom or $550 million.
MNC Vision is Indonesia’ biggest pay tv company. In September 2018, its assets valued Rp8.91 trillion. It fell by 14.81 percent compared to the same period in 2017.
Meanwhile, on Monday’s trading, two Tanoesoedibjo’ companies BMTR and MNCN fell by 25 percent each to Rp360 each and Rp975 a share, probably related to Vivendi SA’ unclear acquisition plan.
The weakening occurs amid the report their owner buy the United States President Donald Trump-owned Beverly Hills property. The price paid was $13.5 million – nearly double the $7 million that the Trump Organization paid in 2007.
Tanoesoedibjo, a media executive billionaire who ran for vice president in Indonesia in 2014, has been Trump business partner for so long. He has partnered with Trump on two Indonesian projects, a resort in Bali and a golf course in West Java. Tanoesoedibjo also attended Trump’s inauguration in 2017 and posed for photos with Eric and Lara Trump.
Written by Lexy Nantu, Email: email@example.com