Two of MNC Group units, PT MNC Sky Vision Tbk (MSKY) and PT MNC Investama Tbk (BHIT), are planning to raise Rp6.3 trillion ($471 million) through rights issues and bank loans this year. While Indonesia’s largest telecommunication operator Telekomunikasi Indonesia (Telkom), has launched PaDi – a national digital library program that will give the country’s 34 provinces access to thousands of local book titles.
MNC Group fund raising
MNC Sky Vision – the operator of pay-TV Indovision – will soon close a loan deal worth Rp3.6 trillion ($275 million) from foreign banks for debts repayment. MNC Sky Vision will also offer 706.38 million new shares, or 10 per cent of its enlarged capital, up for sale in a non-preemptive rights issue worth Rp 769.9 billion to strengthen capital structure. In total, the company will raise Rp4.3 trillion ($323 million).
“The closing will hopefully be reached in third quarter this year,” said Director of MNC Group Oerianto Guyana, as quoted by local media.
Another MNC Group’s unit, PT MNC Investama Tbk (BHIT), is planning to raise Rp2 trillion ($150 million) through private placement and rights issue. The funds will be used for expanding investments in the television business, and acquiring a small bank to be merged with the company’s existing PT Bank MNC International Tbk (BCAP).
According to plan, the company will release up to 3.11 billion new shares (8 per cent of enlarged capital) for its non-preemptive rights issue, and 8.55 billion shares for its preemptive offerings.
Owner and CEO of MNC Group Hary Tanoesoedibjo had said the company is currently in talks with several foreign investors who want to invest in PT Sky Vision Network (SVN) – a new holding for the group’s pay tv, OTT and broadband business – although he said it is still too early to predict when any deal is going to be reached.
Developing Sky Vision will be the main focus of MNC Group this year. The new holding firm manages MNC Sky Vision and PT MNC Kabel Mediacom (MKM), also known as Play Media.
State-owned operator Telkom launched its national digital library program last week, targeting to build at least 1,000 PaDi access points spread across 34 provinces in Indonesia by year end. As of today, there are already 200 access points in Telkom’s offices and wifi-corners.
The program is being supported by the Ministry of State-owned Enterprises and the Ministry of Education and Culture, whom at the launch event jointly announced a target of building 5,000 access points in the next few years.
The Minister of State-owned Enterprises Rini Sukarno said the program will be synergised the Palapa Ring Project, which aims to build 9,200 kilometres long of optic fibre cables to link Indonesia’s remote islands. Under her command, the world’s largest archipelago will soon be connected through internet.
“State-owned companies are working very hard to realise this vision of being the agent of national development, not only in terms of physical infrastructures, but we are also speaking about the human resources,” she said.
Prior to launching PaDi, Telkom had introduced an e-book platform called QBaca. The application, which was launched in November 2012, provides more than 500 Indonesian titles.
This year, Telkom plans to to spend 80 per cent of its capital expenditure budget of Rp28 trillion ($2.1 billion) on acquiring overseas and local digital businesses. A top official said the company is scouring key markets in Southeast Asia, Japan, South Korea and the US.
Telkom booked a first-quarter profit of Rp4.59 trillion ($347.72 million), a 20.4 per cent increase compared to Rp4.81 trillion in the same period last year. The company also posted a 16.6 per cent revenue jump to Rp27.54 trillion with earnings before interest, tax, depreciation and amortisation (EBITDA) rising 18.8 per cent to Rp14.66 trillion.