JAKARTA (TheInsiderStories) - An over the top provider, PT Asia Vision Network, a subsidiary of PT MNC Vision Networks Tbk (IDX: IPTV) has signed an agreement to merge with Malacca Straits (NASDAQ: MLAC) the management announced on Monday (03/22). The two agreed to complete the merger by the end of the second quarter or the beginning of the third quarter of 2021.
After merged, the valuation of both companies is estimated US$573 million. The unit is the holding company of Visio+ and MNC Play, the third largest broadband and fiber optic pay-TV operator in Indonesia. While, Malacca is Kenneth Ng’ publicly traded acquisition company listing in tech bourse in United States.
Executive chairman of MNC Group, Hary Tanoesoedibjo, said in a statement, this merger is an important moment for the subsidiary because it will strengthen the company’ balance sheet with the potential for fresh incoming funds around $130 million. So far, Asia Vision Network has partnerships with major players and could benefit a preparations for listing on international capital markets such as NASDAQ.
Currently MNC Vision has 50 percent share of national viewers on free-to-air broadcasts (53.5 percent in prime time), around 8 million pay TV subscribers, more than 73 million active monthly news portal users, and 217 million social media followers. The parent targeting, Asia Vision Network is aiming for an average revenue growth of 29 percent in the next five years.
Last year, the issuer has processed the private placement program by issued 2.86 billion new shares with an exercise price Rp300 or in total Rp858 billion ($59.58 million), which were subscribed by Tempus Eternity Ltd., and Charlton Group Holdings Ltd. 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.
MNC Vision 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.
Vivendi 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.
US$1: Rp14,400
Written by Editorial Staff, Email: theinsiderstories@gmail.com
