JAKARTA (TheInsiderStories) – The Singapore High Court has approved the bond exchange offer proposed by the investment fund firm owned by Hary Tanoesudibjo with total amount US$231 million, the management announced today. With the approval, the bondholders can convert the debt with new shares or bonds issued by PT MNC Investama Tbk (IDX: BHIT).
The note-holders wants to convert their bonds with shares can carry out in two months period since the effective date, while for the new bonds in the six months time. Based on the proposal by the issuer, every $100,000 of the notes could convert to 8.27 million shares of the company with a an exercise price of Rp173 ($0.012) a share.
Then with the debt to bond swap scheme, MNC Investama proposed every $100,000 get the same amount of the new bonds with a fixed coupon one percent per year, plus a variable coupon which is determined based on the amount of cash dividends the company receives from the units, PT Global Mediacom Tbk (IDX: BMTR) and PT MNC Kapital Indonesia Tbk (IDX: BCAP). The new bonds have a five year tenures.
Based on the company data, at least 65 percent of bondholders has agreed to change their notes into shares and will be issued by the company within 12 months from the effective date. The management said, the debt to equity swap will reduce the remaining debt of the group from $231 million to a maximum of $81 million.
While, the number of shares will increase from Rp12.2 trillion to Rp14.5 trillion, up 18.1 percent after the transaction, bringing the book value per share rises to Rp196 a unit. Darma Putra, President Director of MNC Investama, said on Monday (01/02), with this approval, he hope that the company can grow faster and move forward with digitization program in all business units.
End of 2020, the company had also completed a private placement worth of Rp599 billion. The issuer issued 5.99 billion new shares with an exercise price of Rp100 and all subscribed by Tempus Eternity Ltd and Scotts Capital Investment Corporation.
The holding company was founded on Nov. 2, 1989, focus on business, trade, industry, mining, agriculture, transportation, and development. The issuer is a holding company of several subsidiaries and is engaged in investment.
The company started its commercial operations in 1989. MNC Investama‘ current shareholders are HT Investment Development Ltd., 19.54 percent, Caravaggio Holdings Limited 12.28 percent, New Ascend 11.08 percent, PT Bhakti Panjiwira 7.77 percent, and public 48.81 percent.
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