PT Global Mediacom, the Indonesian media and telecoms group, is inching closer to taking full control of satellite broadcaster MNC Sky Vision after it converted its mandatory exchangeable bonds to increase its holding from 51% to 75.54%.
Back in May,…
PT Global Mediacom, the Indonesian media and telecoms group, is inching closer to taking full control of satellite broadcaster MNC Sky Vision after it converted its mandatory exchangeable bonds to increase its holding from 51% to 75.54%.
Back in May, Mediacom announced its intention to buy Sky Vision outright and in early June converted the bonds that it had previously purchased from an institutional investor for Rp1.43 trillion (US$159m) into approximately 1.53 billion Sky Vision shares. Under the terms of the exchangeable bonds, Mediacom had until September 3 to convert the debt into equity.
Mediacom’s move follows speculation at the beginning of the year that private equity firms Carlyle Group, Providence Equity Partners, Quadrangle Capital Partners and General Atlantic were eyeing a 40% in the pay-TV group. In response to this, Sky Vision appointed JPMorgan and Standard Chartered to advise it on any bids.
Mediacom originally acquired its majority 51% holding in Sky Vision back in mid-2007, again through the conversion of an exchangeable bond.
Sky Vision is currently the largest DTH provider in Indonesia with around 700,000 subscribers. The company operates via two subsidiaries, Indovision and Top TV, which have 67% and 11% of the country’s pay-TV market respectively. Sky Vision estimates that it will generate revenues of US$167m and EBITDA of approximately US$70m for full year 2010.
The Indonesia pay-TV market is expected to rapidly grow over the next few years with Media Partners Asia predicting that the country’s pay-TV will have a CAGR of 33% between 2008 and 2013. At present, only around 3% of the country subscribe to pay-TV.
