JAKARTA (Bisnis): PT Rajawali Citra Televisi Indonesia (RCTI) may become sub-holding of the publicly listed company PT Bimantara Citra for media and broadcasting business if executing convertible bond into 70% of Global TV share. Hary I. Tanoesoedibjo, Bimantara president director said his company is considering PT Media Nusantara Citra (MNC) and RCTI as the sub-holding. "We initially considered MNC for the post but later we also came to think of RCTI. Thus far we are still undecided over the matter as study conducted has yet to conclude," he said after press conference on public expose regarding RCTI bond. RCTI financial statement says it acquired on 6 March 2003 MNC convertible bond for IDR131.16 billion from HSBC International Trustee of Singapore.

The bond was emitted by MNC convertible with 252.000 shares of Global TV (about 70% ownership) in between emission date on 28 February 2003 until maturity date on 28 August 2003. But extension was given until the end of this year before conversion into share could be executed. "RCTI could convert the bond into shares of Global TV. But we still don't know so far whether it would really make it or not," he said. Should MNC chosen as sub holding for media and broadcasting business, RCTI would then be under MNC. Bimantara currently owns 69.82% of RCTI share while the remaining 30.18% goes to PT Bukit Cahaya Makmur ownership. Bimantara is also a 100% owner of MNC, of which acquired 70% Global TV shares. Conversion of the bond would present RCTI with majority portion in Global TV, turning MNC ownership into the broadcasting company.

Regarding RCTI other shareholder Bukit Cahaya Makmur, Harry said the company is a group of investors having just acquired 30.18% share from the previous shareholder, Rajawali Corporation. "It could be that Bukit Cahaya Makmur sell some of its ownership to Bimantara or other investors but it has no option to sell its shares in RCTI in a certain period of time." Harry declined to mention transaction value of acquisition by Bukit Cahaya Makmur for confidential agreement. Reckoning said RCTI may book about IDR1.1 trillion in total revenue this year given the fact that the company has in the last two months booked advertisement earnings of more than IDR200 billion. Asked about RCTI bond, he said cash raised from the emission of IDR550 billion would be used for refinancing of medium term notes of IDR500 billion with interest of 15%. (wiw)

Index

JAKARTA (Bisnis: Surabaya Stock Exchange (SSX) shout from rooftops of its representative bond transaction data, applicable by manager investment as benchmark for Net Assets Value (NAB) calculation with report received has so far reached 65%. SSX Director Guntur Pasaribu said the bourse has had record on 65% of the total bond transaction or July transaction came at IDR700 billion in daily average, making SSX data far more representative than those released by investment managers.

The data could later become a model of bond transaction as yield curve for government bond, enabling bond transaction to come to comparison with liquidity, bank interest rate etc. "As investors are aware of the importance of reporting to SSX, OTC (over the counter) transaction will gradually cut down," he said to Bisnis yesterday. He added SSX is developing bond transaction report mechanism for a better recording referring to cost and benefit aspect.

Transaction reported to the bourse, he continued, will have mark to market despite transparent activities and track record. Minimize Loss Opportunity Institution investors are suggested to firstly get an eyeful on benchmark before making bond transaction to minimize loss opportunity, usually resulted by lack of information. Report to SSX requires only report fee of 0.75 basis point for transaction worth IDR100 billion or less and 0.5 basis point for transaction over the amount. Investment manager has been using their own calculation in NAB appraisal since they deemed SSX data as unrepresentative.

Guntur added the bourse is also developing retail investor for bond transaction as an attempt to reduce domination of institution investors in bond market. Retail market is said as having great potency for bond. SSX is setting a method enabling retail investors with capital of only IDR5 million or more to make bond transaction, a level considerably far lower than current requirement of IDR500 million to IDR1 billion.

This effort would be socialized under cooperation with securities companies having branch offices in provinces as well as with on line partners and bank, expecting a change in bondholder composition from 95% institution and 5% retail currently to 80% institution and 20% retail. Grounding on assumption that banks keep about IDR800 trillion of fund, 10%-20% of which would make bond transaction even massive.(shm)

Index