Indonesia Dealbook: Mahaka Radio to launch IPO; Astra Sedaya to issue bonds worth $145m

Founder Mahaka Group Erick Thohir - Photo by Inter Milan

PT Mahaka Radio Integra, a radio broadcasting company owned by Mahaka Group, is set to offer up to 30 per cent of its enlarged capital while consumer financing firm PT Astra Sedaya Finance plans to issue bonds worth Rp2 trillion ($144.93 million) in the second quarter next year to fund its financing activities.

Mahaka Radio offers 30% shares through IPO in December

Mahaka Radio Integra is set to offer up to 30 per cent of enlarged capital through initial public offering (IPO) in December. However, the company has yet to disclose the share price.

According to a recent prospectus, the company owned by tycoon Erick Thohir would offer 171.4 million unit shares in the IPO, which consists of 114 million new shares and divestment of 57.1 million shares of one shareholder PT Fajar Mentari.

The company said, about 40 per cent of the proceeds will be used to pay off the company’s debt to PT Bank UOB Indonesia and 60 per cent will be used to fund business development.

Mahaka Radio has set public offering date on Dec. 17-18 and followed by listing on the Indonesian Stock Exchange on Dec. 28. PT Trimegah Securities Tbk (TRIM) has been appointed as an underwriter for the IPO.

Mahaka Radio Integra, a subsidiary of publicly listed media group PT Mahaka Media Tbk (ABBA), is the operator of two radio stations Gen FM and Jak FM broadcasting across Jakarta and Surabaya.

Astra Sedaya to issue bonds worth Rp2 trillion

PT Astra Sedaya Finance, a subsidiary of diversified group PT Astra International Tbk (ASII) is planning to issue bonds worth Rp2 trillion in the second quarter 2016, a company official said.

Director of Astra Sedaya Samuel Manasseh told reporters during the weekend, that the bonds proceeds will be used to fund the company’s financing activities. The planned bonds issue is part of the bonds to be issued by the company in the period of 2013 to 202016 worth Rp10 trillion.

In 2016, the company plans to provide consumer financing of around Rp21-22 trillion, almost the same with this year’s financing activities.

The other sources of funding is from loan repayment from consumers and the proceeds from bonds and medium term notes (MTN) issued previously.

The latest bonds issued by the company was in June 2015 worth Rp1.57 trillion which matured in July 2015. In the year, the company also issued MTN worth $300 million in April 2015.

Astra Sedaya, one of the country’s leading consumer financing, focused on provide car loans while another financing firm owned by Astra International, PT Federal International Finance (FIF) provides motorcycle financing.

Vice President Corporate & Treasury Division Head of FIF Jerry Fandy told reporters at the weekend that FIF plans to issue bonds worth Rp5.5 trillion in 2015 fund its consumer financing activities. The company targets to provide financing of Rp29 trillion next year, up from projected Rp27 trillion this year.

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Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.