Creador confirms MNC Skyvision investment

Saban Capital Group also participated as an anchor investor, taking 17% of the offering to Creador's 13%. Although shares were more than two times oversubscribed, Skyvision fell short of its $260 million target, an amount that was already reduced last month from an ambitious $400 million.

Creador described the transaction as a proprietary investment that was sourced through extensive bottom-up research in the Indonesian media sector. It noted that the partners' previous experience investing in the pay TV space in the region proved useful. Brahmal Vasudevan, Creador's founder and CEO, was formerly director of marketing at Southeast Asia pay-TV operator ASTRO.

Skyvision has 1.4 million subscribers and has a 70% market share. Indonesia's pay TV industry grew 30% per annum between 2008 and 2011 and this pace of expansion is likely to be maintained, driven by rising disposable incomes, a relatively young population and increased acceptance of pay TV. At present, less than 3% of Indonesian households subscribe to pay TV services, compared to 46% in India, 45% in Malaysia and 84% in the US.

Skyvision's revenues grew 26% last year to reach $187 million, while EBITDA hit $79 million, an increase of 43% year-on-year. Creador expects EBITDA to reach $107 million and $137 million in 2012 and 2013, respectively.

"MNC Skyvision is a prime beneficiary of the overwhelming trends that are attracting Indonesians to pay-TV," Saban's Jaisinghani, a Hong Kong-based director at Saban, previously told AVCJ. "We think this is a great play on consumer demand within Southeast Asia."

Southeast Asia's media market has becoming increasingly popular among private equity investors, although getting access to deals remains a challenge. Last year, CVC Capital Partners acquired a 49% stake in Link Net, Indonesia's second-largest fixed broadband and cable TV operator. In addition to Skyvision, Saban announced a joint venture between its Tiger Gate distribution arm and Malaysia's Celestial Movie Channels.

Creador is targeting $350 million for a fund focusing on emerging markets in India and Southeast Asia. Previous investments include a MYR45.7 million ($15 million) commitment to OldTown White Coffee, the number-one Asian restaurant chain in Malaysia.

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• Topics
• Media
• Expansion
• Southeast Asia
• Creador
• Saban Capital Group
• TMT
• Indonesia
• Southeast Asia
• IPO