AIG buys bonds worth US$50m from Indovision<\/p>\n
JAKARTA (JP): The American International Group's (AIG) Asian
\nInfrastructure Fund has agreed to buy convertible bonds worth
\nUS$50 million, which offer a zero percent interest rate, from the
\nIndovision Group.<\/p>\n
The agreement was signed here Thursday evening by Indovision's
\npresident Peter F. Gontha and Arnold Weiss, senior vice president
\nof AIG's principal advisor, the Emerging Markets Corporation
\n(EMC). The agreement gives AIG an option to convert the bonds
\ninto a 13.5 percent equity interest in Indovision's parent
\ncompany, PT Matahari Lintas Cakrawala (Malicak) when the latter
\ncompany is eventually listed.<\/p>\n
Thelma S. Victorio, chief financial officer of PT MediaCitra
\nIndostar, which is also a subsidiary of Malicak, explained
\nyesterday that Malicak plans an initial public offering of its
\nshares sometime between 1997 and 2003.<\/p>\n
\"When we are listed, AIG will be the first to know,\" she said.<\/p>\n
Indovision, a direct broadcast satellite television company
\nowned by Gontha, Henry Pribadi and Bambang Trihatmodjo, provides
\nsubscribers with access to five overseas television programs,
\nnamely the Discovery documentary and science channel,
\nEntertainment Sport Program Network (ESPN) International, Home
\nBox Office (HBO), Cable News Network (CNN) International and TNT
\n& Cartoon Network.<\/p>\n
Last February, Indovision signed an agreement with Hong Kong's
\nStar TV to distribute 15 channels from the Asia Sat 2 satellite.<\/p>\n
Access to the international programs are made possible through
\ndecoders which are solely distributed and managed by Malicak.<\/p>\n
Decoders<\/p>\n
In order to relay the programs, subscribers need to own a
\nparabola antenna and a decoder worth Rp 4.35 million (US$1,961),
\nexclusive of value added tax, and must pay a $500 monthly
\nsubscription fee.<\/p>\n
Malicak presently provides decoders for 15,000 individual
\nsubscribers and 15,000 hotel rooms and expects to increase the
\nnumber of its subscribers to 100,000 within the next two years.<\/p>\n
PT MediaCitra Indostar, another subsidiary of Indovision, will
\nown and manage Indovision's Indostar satellite, which is expected
\nto start operation in November next year.<\/p>\n
Victorio said that the launching of the satellite will be a
\nmajor consideration for Indovision when issuing a public
\noffering.<\/p>\n
AIG, a U.S.-based international insurance organization with
\noperations in 130 countries, is a major provider of commercial
\nand industrial coverage.<\/p>\n
With $1.09 billion in aggregate commitments, AIG-Asian
\nInfrastructure Fund was formed last year to make equity and
\nconvertible debt investments in infrastructure and related
\nindustries in China and the Asia-Pacific region.<\/p>\n
Between 35 percent and 50 percent of the funds are expected to
\nbe invested in China and the remaining funds in Indonesia,
\nMalaysia, the Philippines, Taiwan, Thailand and other Asia-
\nPacific countries. (pwn)<\/p>",
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