This Subsidiary Of MNC Vision, Owned By Conglomerate Hary Tanoesoedibjo, Has Been Canceled On The US Stock Exchange

MNC Building. (Photo: Doc. MNC Land)

JAKARTA - PT MNC Vision Networks Tbk (IPTV) entity, namely PT Asia Vision Network (AVN), has canceled its planned merger with Malaca Straits Acquisition Company (MLAC). In fact, MLAC is a special-purpose acquisition company (SPAC) or a shell company that has been listed on the Nasdaq, the United States (US) Stock Exchange.

As a result, the way for this company belonging to the conglomerate Hary Tanoesoedibjo to enter the US Stock Exchange has not yet been completed. MNC Vision Network's Corporate Secretary Muharzi Hasril explained that actually the AVN and MLAC merger transaction process had been carried out since the second semester of 2020, at which time, SPAC transactions were still very attractive to investors on Nasdaq.

"However, entering 2021, there are many SPAC transactions on the Nasdaq, which affect the valuation. SPAC transactions are considered overcrowded," he said in a letter to the Indonesia Stock Exchange (IDX), quoted on Sunday, September 19.

Muharzi continued, this caused MLAC's share price to be below the par value of 10 US dollars per share. On the Nasdaq, as of Sept. 16, 2021, MLAC's stock was at $9.92, down 0.7 percent since the start of the year.

After exploring various roadshows, MLAC and AVN finally agreed not to proceed with the transaction. Another thing behind the decision above is the increasing enthusiasm of investors in the IDX for companies engaged in digital, including the AVN business focus.

Previously, based on IDX's information disclosure on Wednesday, June 26, IPTV announced that its subsidiary Asia Vision Network (AVN) had submitted a confidential registration report on form F-4 to the SEC in the US, an institution equivalent to the Financial Services Authority (OJK) in Indonesia.

The submission of the report relates to the merger carried out by AVN with a blank check company formed to carry out the acquisition, namely MLAC which has been registered on the United States capital market Nasdaq.

AVN also expects AVN to be listed on the NASDAQ as Indonesia's new holding company in the third quarter of 2021. It is stated that the business combination is subject to the terms and conditions of closure, including approval from MLAC shareholders.

President Director of MNC Vision Networks Ade Tjendra said that this step was aimed at creating much greater opportunities for the company's business growth.

"Together with Malacca Straits, we are determined to bring the fastest growing OTT (over the top) and streaming business in Indonesia to be listed on Nasdaq, the world's largest capital market," said Ade at the time.