Thursday, December 10, 2009

Ashmore take over SCTV

PT Elang Mahkota Teknologi (Emtek) recorded warrant at the same time with initial public offering (IPO) in relation with the IDR1.4 trillion debt restructuring last year.
However, on the listing the warrants were converted into stocks listed together with the IPO of 1.72 billion units or three folds of the 512.73 million units sold to public.
The warrants here were issued mid last year when the company restructured its debt to Ashmore. Warrant conversion scheme with IPO has been approved by both parties in March 2008.
The company is the creditor of Emtek on its acquisition of 86.28 percent shares of PT Surya Citra Media Tbk (SCMA) in some phases in 2004-2008. SCMA is the holding company of PT Surya Citra Televisi (SCTV).
Ashmore owns 33. 27 percent shares on the later IPO. Five entities used here include Ashmore Asian Recovery Fund with 15.49 percent, Ashmore Global Special Situations Fund 3 with 10.64 percent, Ashmore Global Special Situations Fund 2 with 3.23 percent, Ashmore Global Special Situations Fund 4 2.31 percent, and EMDCD 2.05 percent. Ashmore in 2004 expressed its interest to acquire PT Kiani Kertas but failed to materialize.
The warrant conversion when IPO did not have any material value so the company would only tap fresh cash from new stock sales.
The company appointed PT Mandiri Sekuritas as the single underwriter in the IPO. Book building is scheduled on December 9-17, 2009 and offering on January 4-5, 2010.
Some 42 percent of IPO fund will be allotted for working capital, 33 percent for capital expenditure next year, 18 percent for business development, and 7 percent for debt payment of the subsidiary firm of PT Omni Intivision.
In the IPO, the company sold new shares and old shares with a par valu of IDR600-800 and expected to tap IDR300-400 billion fund at maximum. The fund will be allotted for connectivity business expansion.
The company will sell 10 percent shares or 512.73 million units to public consisting of 256.36 million new shares and 256.36 million founder shares. The total fund tapped from IPO is estimated at IDR300-400 billion.

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