JAKARTA (TheInsiderStories) – Indonesian tycoon, Hary Tanoesudibjo, explore a potential merger between Vision+ and MNC Play with the Special Purpose Acquisition Company (SPAC), Malacca Straits Acquisition Co., Tiga Investment, and other investors, said one source close to the deal on Thursday (02/25). Both companies is the unit of PT MNC Vision Networks Tbk (IDX: IPTV), a pay TV, fixed broadband, and digital content services provider.
Vision+ engaged in mobile streaming application TV and Video on Demand. While, MNC Play is an over-the-top provider, cable TV and internet services in the country. Tiga Investments founded by Singapore-businessman, George Raymond Zage.
Previously, his company became a shareholder of conglomeration firm, PT Lippo Karawaci Tbk (IDX: LPKR) by absorbing the new shares. He joined with Hong Kong-based company Chow Tai Took Nominee Limited in the transaction.
The management denied to comment the rumor but asserted it would immediately give an official statement when the deal in place. Vision+ launched in 2019 and has 1.6 million paid subscribers and more than 32 million active users per month and MNC Play has around 300,000 subscribers.
Last month, MNC Vision has received a fresh funding from Tempus Eternity Ltd., and Charlton Group Holdings Ltd., with total amounts of Rp857.19 billion (US$61.22 million) after completed the private placement program at the end of 2020. The company have implemented the rights issued 2.86 billion new shares with an exercise price of Rp300 a share.
Both companies also became a standby buyer of the other company under the group, PT MNC Investama Tbk (IDX: BHIT) after absorbed part of 6.00 billion shares with priced Rp100 a unit and raised Rp599.87 billion. MNC Vision is a subscription pay TV owned by the MNC Group, whose shares have been listed on the IDX since June 29, 2012.
Currently, PT Global Mediacom Tbk (IDX: BMTR) is the controlling shareholders of the company with an ownership of 66.83 percent and others hold by the public.In July 2020, a cable TV operator has announced to release a new shares around 2.46 billion shares to pay off its unit’ debt.
The provider stated that the proceeds from the rights issue will be used to pay off the loans of PT MNC SKY Vision Tbk (IDX: MSKY) and PT MNC Kabel Mediacom also to increase the working capital of the MNC Kabel. The operator officially took the floor at the Indonesia Stock Exchange in 2019.
At that time, a subsidiary of the MNC Group set a price of Rp240 per share. When listing, the issuer released 3.52 billion shares or 10 percent of the issued and fully paid up capital, where each share is entitled to one warrant to purchase one share of the company at a price of Rp288 per unit. The company obtained funds of Rp845.20 billion from this corporate action.
After listing the shares, Global Mediacom still retains 90 percent ownership in the company. French’ Vivendi SA or Hong Kong’ Argyle Street reportedly took part in the absorption of the IPO. The investor reportedly plans to own 50 percent of the company shares owned by the Tanoesudibjo family in stages.
For the first phase, the investor will invest 20 percent and the rest will be executed through an initial offering. This action is estimated to be worth around $500 million. Last year, MNC Vision completed the acquisition of 60 percent of the shares of another cable TV provider, K-Vision, which is a pay television operator with KU-band satellite technology and focuses on middle to lower class customers.
The agreement is considered to add 120,000 new customers per month from the Group, excluding growth in customers from its three subsidiaries, MNC Sky Vision, MNC Play, and MNC Now. According to the CEO, Ade Tjendra, the company’ priority is to consolidate the industry by reducing the number of players in the market.
Currently, SPAC has been implemented on various global exchanges, one of which is in the United States. The Indonesia Stock Exchange will also soon make regulations regarding SPAC to accommodate the initial public offering of giant e-commerce companies in Indonesia.
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