A Company Owned By Hary Tanoesoedibjo Merges With Malacca Straits, Valued At IDR 8 Trillion!

Conglomerate Hary Tanoesoedibjo. (Photo: Doc. Antara)

JAKARTA - PT MNC Vision Networks Tbk (IPTV) through its subsidiary PT Asia Vision Network (AVN), the company that owns the digital streaming service Vision+, has made an agreement to merge with Malacca Straits. With the merger, the Pro-forma company valuation is predicted to reach USD 573 million or approximately IDR 8 trillion.

As is well known, AVN is the holding company for Vision+, the Over-The-Top media business, and MNC Play, the 3rd largest broadband and fiber optic pay-TV operator in Indonesia. Meanwhile, MLAC is a publicly-traded special-purpose acquisition company led by CEO Kenneth Ng.

The two companies agreed to complete this merger by the end of the second quarter of 2021 or the beginning of the third quarter of 2021. Executive Chairman of MNC Group, Hary Tanoesoedibjo said that this merger is an important moment for AVN and will strengthen the company's balance sheet with the potential for fresh funds to reach USD 130 million.

The 33rd richest person in Indonesia said this would not only help increase the company's cash flow but also strengthen MNC Vision's position as a business leader in the Indonesian OTT market.

"We have partnerships with major infrastructure players that can provide an advantage to maintain our business model as we prepare for listing on the NASDAQ capital market. Being a listed company in the US will give us access to grow capital as well as become the best global platform in the world", said Hary Tanoe, in his written statement, quoted on Tuesday 2 March.

He added, with the penetration of OTT media which has only reached 2 percent, Asia Vision Network is considered to have a strategic position in the initial growth cycle. This potential is supported by Indonesia's position as the fourth most populous country in the world by population with a GDP reaching more than USD 1 trillion and an average population of 31 years old.

In addition, MNC Media's reach reaches 50 percent of the national audience share on Free-to-Air tv broadcasts (including 53.5 percent in the prime-time segment), then more than 8 million pay-TV subscribers, its news portal has more than 8 million subscribers. 73 million monthly active users, and 217 million subscribers/followers on MNC's social media accounts.

"The combination of AVN and Malacca Straits is believed to bring AVN to enter the NASDAQ stock exchange, one of the major capital markets in the world. This move will expand access for global investors to own companies with the fastest-growing Over-The-Top (OTT) and streaming in Indonesia", said Hary Tanoe.

Likewise, Malacca Straits CEO Kenneth Ng also expressed his pleasure in uniting AVN and Malacca Straits. As a Special Purpose Vehicle Company (SPAC), Malacca Straits was determined from the start to find a company that is strong, has a proven business model, and has significant growth potential.

"Asia Vision Network is an OTT, broadband and IPTV company with a strong, growing, and very profitable network and the merger with Malacca Straits will position us for long-term and sustainable growth", he said.