JAKARTA (TheInsiderStories) – Bakrie Group’ media business group PT Visi Media Asia Tbk (IDX: VIVA) and its subsidiary PT Intermedia Capital Tbk (IDX: MDIA) will make additional capital through a private placement by releasing as many as 10 percent of new shares.
Based on disclosure information today (03/19), VIVA will issues as much as 1.64 billion shares of the total issued and paid-up capital.
The purpose of this planned is to pay off its subsidiary’ debt PT Lativi Mediakarya in the form of a Senior Facility Agreement with a value $9.94 million.
The debt will mature in October 2019. While the remaining funds will be used for the purposes of Visi Media’ working capital and its subsidiaries. Meanwhile, Intermedia Capital will issue 3.92 billion new shares of the total issued and paid-up capital.
Not much different from the parent company, this fund will also be used for the payment of PT Cakrawala Andalas Television’ Senior Facility Agreement, a subsidiary of MDIA with a value $21.94 million due in October 2019. The remainder will be used for Anteve operator’ working capital.
This private placement step was taken with the aim that later it would not create new debt obligations for both companies because the source of funds for debt payments was not in the form of loans.
This corporate action for both companies will have a positive impact to reduce the debt burden on a consolidated basis and providing equity revenues that can strengthen its capital structure. In addition, the company’ cash flow performance will also increase to support the company’ activities.
This corporate action will create a dilution effect for share ownership of each company’ shareholders of 9.09 percent even though it does not reduce the number of shares held.
The companies will ask for their shareholders’ approval to launch this plan at the Extraordinary General Meeting of Shareholders scheduled for April 25, 2019.
Previously, reportedly Eric Thohir who had sold his stake in Inter Milan would buy VIVA shares. The issue was immediately ignored by him. He explained that currently he only owns shares in MDIA, a company that owns ANTV television stations.
He also stressed that he had no plans to buy VIVA shares. According to him, its just mere market gossip. Thohir sold Inter Milan’ shares to LionRock Capital at 31.05 percent. Media in Italy said that the value for the shares was around 150 million euros, equivalent to Rp 2.4 trillion.
He claimed, the money was partly to restore his personal capital and pay off debts. Because he acknowledged that every investment abroad was partly financed from debt.
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