DPT Global Mediacom , an Indonesian media group, has decided to delay a $300 million initial public offering by its unit PT MNC Skyvision, the nation’s biggest pay TV provider, and is considering a strategic stake sale, the firm’s CEO said on Tuesday.
Global Mediacom’s President and CEO Hary Tanoesoedibjo told reporters that he expected the stake sale of MNC Skyvision, either via an IPO or a strategic sale, will be completed in the next six months or next year. An IPO had been expected in the third quarter.
“The IPO process is still ongoing.. We will do either an IPO or private placement for MNC Skyvision,” said Tanoesoedibjo, declining to gave the reasons why the company decided to delay the IPO plan.
Sources told Reuters in March this year that MNC Skyvision planned to sell up to a 30 percent stake in an IPO and it had appointed UBS and Morgan Stanley as the underwriters.
Two sources with direct knowledge of the plan told Reuters on Tuesday that the firm has decided to delay the IPO because of concerns over pricing given weak investor sentiment due to the eurozone debt crisis.
“Tanoesoedibjo is considering to sell a significant minority stake in MNC Skyvision to a strategic investor now as IPO appetite is not looking good,” said one of the sources, who declined to be identified as the discussions were private.
The sources say the pay TV operator could be valued at over $1 billion including debt.
MNC Sky Vision is Indonesia’s market leader in satellite pay TV, with a 78 percent market share from its two brands Indovision and Top TV, although pay TV market penetration rates are still low in the world’s fourth most populous nation.