Aburizal Bakrie's Media Company Sells Shares And Receives IDR 2.3 Trillion To Pay Debt, Observer: A Smart Step

Anindya Bakrie. (Photo: Instagram @anindyabakrie)

JAKARTA - Capital market observer Lucky Bayu Purnomo assesses PT Visi Media Asia Tbk (VIVA) 's move to sell shares of PT Intermedia Capital Tbk (MDIA) in a scheme to pay off all debts of the VIVA Group as a smart and innovative step in the midst of an economic slowdown due to the pandemic.

According to Lucky, the action carried out by the company owned by conglomerate Aburizal Bakrie did not have a diluting effect on the ownership of other shareholders in MDIA and did not cause a change in control over MDIA and its subsidiaries.

"The sale and purchase price of MDIA's shares is made above book value. Debt can be managed properly and control over MDIA remains with VIVA," said Lucky, quoted from Antara, Tuesday, March 16.

Furthermore, this comprehensive debt settlement is expected to provide significant benefits to the VIVA Group, including reducing the company's and subsidiaries' debt obligations denominated in US dollars, thereby eliminating the risk of fluctuations in the depreciation of the rupiah against the US dollar and costs of hedging.

In addition, the company's financial position improved with the increase in the company's equity because the sale and purchase of object shares was carried out at a price of IDR 158 per share, higher than the book value.

Then, a healthier balance sheet and strong cash flow will provide flexibility for the company to develop its business in the realm of digital media by utilizing the footprint and inventory owned by ANTV and tvOne.

President Director of PT Visi Media Asia Tbk Anindya Novyan Bakrie said, with the level of debt at PT Cakrawala Andalas Televisi (CATV) as a very "sustainable" subsidiary, the VIVA Group is becoming more agile in moving to develop the digital media business via its subsidiary entities and business portfolios. other digital.

"We have started the digital transformation process of all of VIVA's core businesses and the initiative to diversify VIVA's content and expand its reach through various digital platforms to pamper millennial and centennial consumers will be launched in the near future," said Aburizal Bakrie's son.

Previously, the Extraordinary General Meeting of Shareholders (EGMS) of PT Visi Media Asia Tbk (VIVA) approved the company's plan to sell 39 percent of shares in PT Intermedia Capital Tbk (MDIA), the holding company of ANTV television station.

The amount of shares released by the Bakrie Group media issuer is equivalent to 15.29 billion shares to Reliance Capital International Limited (RCIL), the party approved by the creditors to carry out the share sale and purchase.

Anindya Bakrie said the sale of MDIA shares was carried out with a value of 171.8 million US dollars, equivalent to Rp2.43 trillion or Rp158 per share.

"With the completion of this share sale transaction, VIVA will become a debt free company," said Anindya.

The MDIA share sale transaction is part of the settlement scheme or repayment of all debts of the VIVA Group based on the Debt Settlement Agreement (DSA) which was signed on December 22, 2020.

In the DSA, the VIVA Group and creditors have agreed on matters including the final position of VIVA's total outstanding principal loan of US $ 239.77 million consisting of principal debt based on the Junior Facility Agreement amounting to US $ 78.37 million and principal debt. based on the Senior Facility Agreement amounting to US $ 161.39 million.

Part of the senior facility debt which is the responsibility of ANTV will be settled through the refinancing facility which will be obtained by ANTV from national banks amounting to Rp960 billion or equivalent to 67.94 million US dollars (Cash Settlement) assuming an exchange rate of Rp14,130 per US dollar, middle rate. Bank Indonesia as of December 10, 2020.

The total principal debt after deducting cash settlement amounting to US $ 171.83 million or equivalent to Rp2.43 trillion will be paid through the sale of MDIA shares. Then, 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.