JAKARTA (TheInsiderStories) – MNC Group holding firm owned by Indonesian tycoon, Hary Tanoesoedibjo, plans to restructure the debt through a private placement scheme, said the company yesterday. The issuer, PT MNC Investama Tbk (IDX: BHIT), issues 6.00 billion new shares with an exercise price Rp100 a unit and estimating to raises around Rp599.87 billion (US$42.54 million).
This corporate action has received the approval on August 18, 2020 and will be carried out on Dec. 8. As reported, the group MNC in the middle to restructure its US Dollar-denominated bonds worth of $231 million. According to the president director, Darma Putra, the company has held a dialogued with the bondholders and nearly 70 percent have approved the share conversion.
He explained, the bondholders have two options to exchange their notes. First, exchange to a new 8.27 million shares per $ 100,000 of the principal amount of the bonds. The conversion price equal to Rp173 a share using an exchange rate of Rp14,302 versus the American Dollar.
Second option, is convert the senior notes with new bonds issued by the company with ratio $100,000 for every $100,000 of the principal amount. The new bonds offered with a fixed coupon of 1 percent per annum, plus a variable coupon of cash dividends that the issuer receives from its unit, PT Global Mediacom Tbk (IDX: BMTR) and PT MNC Kapital Indonesia Tbk (IDX: BCAP). The new bonds have a term five years.
In June, the publicly listed firm has announced to issue as many as 6.77 billion shares or 10 percent of all shares and fully paid up capital. The management stated, MNC Investama can invite strategic investors who are interested in investing their capital.
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, public investors 48.81 percent.
In the first semester of 2020, the company revenue decreased 8.68 percent from Rp7.83 trillion (US$540 million) to Rp 7.15 trillion. The revenues from the media business line also edged down 2.14 percent to Rp5.59 trillion from last year of Rp5.71 trillion and from financial institutions dropped from Rp1.29 trillion to Rp1.19 trillion in the first half of 2020.
Other income also decreased from Rp821.07 billion to Rp357.04 billion. MNC Investama also bears an exchange rate loss of Rp139.28 billion, whereas in the same period last year it still gained a foreign exchange profit of Rp193.41 billion. As a resulted, the company booked a net loss of Rp479.92 billion compared to the same period the previous year a net profit of Rp261.03 billion.
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