Research

VIVA Group: When Will The M&A Happen?

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Algo Research Team

Company | Jan 04, 2023 | Views: 136

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Key Summary:

  • Group is planning to repay its debt to improve future profitability
  • Corporate actions: 10% private placement at MDIA and 39% stake sell by VIVA
  • Fundamental is not as attractive compared to peers

Happy New Year! Hopefully 2023 will bring you more luck, better health, and profit all around. How did you spend your New Year holidays? For us, due to our mid-age, we mostly stayed at home watching TV while the fireworks were blasting from outside on New Year’s Eve. Speaking of TV, did you know that according to Hootsuite, Indonesians typically spend close to 3 hours/day to watch TV? But not as outstanding as more than 8hours/day spent on internet! 


Nevertheless, what we want to highlight today is VIVA, which operates ANTV, through its subsidiary MDIA (90% owned, 10% public) and TVOne through Lativi/LM (100%). The company is ultimately owned by Bakrie family through Bakrie Global Ventura (54%) and the rest is public (46%) ownership. The group is the top 5 largest media broadcasting in Indonesia. According to management, VIVA wants to sell 39% stake of MDIA, and MDIA will also issue 10% new shares for private placement. The purpose of these transactions is to restructure the group’s heavy debt load. If they succeed, this means that about 49% MDIA stake will be bought by a new investor. This motion has been set and approved since 1Q21 with Reliance Capital International Limited (RCIL) as the strategic buyer, but no sign of a deal has been made. Will it be different in 2023?

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