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VIVA to float ANTV shares, eyes new loans
Listed media group PT Visi Media Asia (VIVA) announced its subsidiary PT Cakrawala Andalas Televisi (ANTV), a television station, intended to file for an initial public offering (IPO) in the first half of 2014
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isted media group PT Visi Media Asia (VIVA) announced its subsidiary PT Cakrawala Andalas Televisi (ANTV), a television station, intended to file for an initial public offering (IPO) in the first half of 2014.
The announcement on Wednesday follows other financial moves by the company including the offering of shares to strategic investors such as Trans Corp ' a media holding company owned by tycoon, Chairul Tanjung ' and the MNC Group run by tycoon Hary Tanoesoedibjo.
Negotiations, however, faltered as the entities involved failed to agree on a sales price.
VIVA operates two television channels, ANTV and tvOne, in addition to online news website VivaNews. The group's commissioners include Anindya Bakrie, son of tycoon and Golkar Party presidential Aburizal Bakrie.
'PT Intermedia Capital [IMC], ANTV's holding company of, is preparing for the IPO,' VIVA finance director, Charlie Kasim, said.
Based on their annual report, VIVA has a 99.99 percent direct stake in IMC, and a 99.99 percent indirect stake in Cakrawala Andalas Televisi.
'We are slating the IPO for the first quarter of next year, we will use our June financial report for this purpose,' he added.
However, Charlie noted that the company had not yet confirmed key details of the offering, including the amount of shares.
'We are still deliberating particulars of the IPO,' he said, adding that the group was considering the release of at least 10 percent of IMC's shares and planned to raise no more than Rp 500 billion through the offering.
'Part of the funds raised would go toward refinancing,' he said on the sidelines of a shareholder's meeting.
The group, Charlie continued, had drafted a prospectus for the offering and it was currently 'selecting underwriters for the IPO'.
During the meeting, VIVA secured the shareholders' approval to utilize a majority or all of the group's assets as collateral to obtain loans chiefly for the refinancing of their US$80 million loan from
Deutsch Bank.
'We would like to refinance this loan, which will mature in February 2014,' VIVA CEO, Erick Thohir, said.
He added that the group had been researching alternative as interest rates had risen by roughly 1.5 percent over the past two months.
'We want to obtain a more affordable bank loans with longer tenors to refinance our debt at Deutsch Bank, which carries 9 percent interest,' he said.
Charlie further said that the group sought to secure loans of approximately $90 million to refinance their debts.
'This is because we have to factor in additional costs. An ideal tenor would be 4 years,' he said.
Erick further noted that the group still had to meet with banks to discuss the possibility and terms around the loans.
