Aburizal Bakrie Conglomerate-Owned Media Company Receives IDR 2.4 Trillion, Instantly Runs Out To Pay Debt
JAKARTA - The media company owned by conglomerate Aburizal Bakrie, PT Visi Media Asia Tbk (VIVA) today, Monday 15 March has just held an Extraordinary General Meeting of Shareholders (EGMS). As a result of the meeting, VIVA shareholders agreed to sell 39 percent of the shares of PT Intermedia Capital Tbk (MDIA) for IDR 2.43 trillion.
MDIA, which is the holding company for television station ANTV, is now officially releasing 39 percent of shares or the equivalent of 15.29 billion shares to Reliance Capital International Limited (RCIL).
RCIL as the party approved by the creditors to carry out the share sale and purchase, purchased MDIA shares with a value of 171.82 million US dollars or equivalent to Rp2.43 trillion, or from a value of Rp158 per share.
The management of VIVA, which is the parent of the tvOne television station, said that they sold MDIA shares in the framework of a scheme to pay off all debts of the VIVA Group based on the Debt Settlement Agreement (DSA) which was signed on 22 December 2020.
In DSA, VIVA and creditors have agreed on 4 points. First, the final position of VIVA's total outstanding principal amounted to US $ 239.76 million consisting of principal debt based on the Junior Facility Agreement amounting to US $ 78.37 and principal debt based on the Senior Facility Agreement amounting to US $ 161.39 million.
Second, part of the Senior Facility debt which is the responsibility of ANTV will be settled through a refinancing facility that will be obtained by ANTV from national banks amounting to Rp960 billion or equivalent to 67,940,552.02 US dollars (cash settlement) assuming an exchange rate of Rp14,130 per US dollar. , Bank Indonesia's middle rate as of December 10, 2020.
Third, the total principal debt after deducting Cash Settlement of US $ 171,825,633.22 or equivalent to Rp2.43 trillion will be paid through the MDIA share sale transaction. Fourth, all interest and fees that have been incurred and have not been paid in connection with the Senior Facility and Junior Facility are written off.
"With the completion of this share sale transaction, VIVA will become a debt free company," said VIVA President Director, Anindya Novyan Bakrie.
The share sale transaction to be carried out by VIVA and RCIL is not an affiliated transaction or transaction that contains a conflict of interest as referred to in POJK-42. Currently, VIVA holds 89.99 percent of MDIA shares.
After the transaction with RCIL worth Rp2.43 trillion, the shareholder composition of MDIA became VIVA 51 percent, RCIL 39 percent, and public 10 percent. The exchange rate used for the transaction is IDR 14,130 per US dollar on December 10, 2020, according to the agreement as a temporary reference between VIVA and RCIL.
Furthermore, the debt settlement is expected to provide benefits for VIVA, including improving the company's financial position by increasing the company's equity because the sale and purchase of shares is carried out at a price higher than the book value.
Then reduce the debt obligations of the company and its subsidiaries denominated in US dollars. In addition, a healthier balance sheet and strong cash flow provide flexibility for these companies to develop their business in the realm of digital media.
"With the debt level at CATV which is very sustainable, the VIVA Group is becoming more agile in moving to develop the digital media business via its subsidiary entities and other digital business portfolios," said Aburizal Bakrie's subsidiary.