JAKARTA. PT MNC Vision Networks Tbk (IPTV) announced the plan to issue 2.47 new shares with a rights issue scheme, to pay off a number of debts and to raise more working capital funds.
IPTV's management explained that 60% of funds obtained from the rights issue would be used to pay off the debt of its subsidiary, PT MNC Kabel Mediacom. Then, 20% will be used to pay off the debt of another subsidiary, PT MNC Sky Vision Tbk (MSKY).
Meanwhile, the rest will be used to "increase working capital to support business development and growth in the number of customers."
For the record, IPTV's total liablilites at the end of 2019 were recorded at Rp 4.55 trillion.
The nominal price of new shares to be issued by IPTV is Rp 100 per share. The company will announce the price that will be used in the rights issue, after obtaining approval from its Extraordinary General Meeting of Shareholders planned for Tuesday (28/7) tomorrow.
IPTV's management added that if a shareholder not to participate in the rights issue, their stake would be diluted by a maximum of 6.54%. At present, 71.72% of IPTV shares are controlled by PT Global Mediacom Tbk (BMTR), 25.50% is owned by public investors, and the remaining shares are held by PT Infokom Elektrindo (3.08%). (KR/AR)