Conglomerate Hary Tanoesoedibjo's MNC Vision Has Been Outspoken About Why Its Subsidiary Was Cancelled On The US Stock Exchange

MNC Vision Building. (Didi Kurniawan/VOI)

JAKARTA - PT MNC Vision Networks Tbk confirmed that the planned merger between their subsidiary, namely PT Asia Vision Network (AVN) and Malaca Straits Acquisition Company, was cancelled. AVN canceled its planned merger with the shell that has been registered on the Nasdaq.

As a result, the cancellation of this merger made AVN's plan to enter the US Stock Exchange disappear. MNC Vision Network Corporate Secretary Muharzi Hasril in a written statement stated that the decision to cancel the merger between AVN and MLAC is final.

"The company has not considered the possibility of continuing the merger plan. The cancellation has no impact on IPTV's operational activities and financial performance," he said in an information disclosure on the Indonesia Stock Exchange website, quoted Monday, October 11.

In addition, regarding MNC Entertainment Limited, which was previously established for the purpose of the merger of AVN and MLAC, IPTV will use the company or disband it, according to the company's plan.

Previously, IPTV President Director Ade Tjendra said his party was disappointed that it could not complete this transaction as planned.

"We have been working closely for the past few months with MLAC, and although we are disappointed that this transaction did not complete as planned, we believe this is the right decision, which was reached amicably by both parties," Ade said.

Meanwhile, MLAC Chief Executive Officer Kenneth Ng said that various unforeseen circumstances beyond the control of either party hindered this plan. Therefore, it concluded together with AVN, it is in the best interests of both parties to terminate the business combination agreement.

Muharzi Hasril explained that the AVN and MLAC merger transaction had been carried out since the second semester of 2020. At that time, the SPAC transaction was very attractive to investors in Nasdaq.

"However, entering 2021, there are many SPAC transactions on the Nasdaq that affect the valuation. SPAC transactions are considered overcrowded," he said.