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Acquiring the Keys to Nirwana

MNC Group Looking to Finance 100% Stake in Pan Pacific Nirwana Resort at Tanah Lot

(9/23/2013) The PT MNC Group is reported to be in search of loans that would allow it to become the sole proprietor of PT Bali Nirwana Resort – a golf and resort facility in Bali near Pura Tanah Lot operated by Pan Pacific Hotels.

PT Media Nusantara Citra’s (PT MNC Group) core business is comprised of 3 Free-to-Air television channels – RCTI, MNCTV and GlobalTV – together with 16 channels created and produced by MNC that is broadcasted on Pay-TV.

The Jakarta Post (Bali Daily) quoted MNC Land director Daniel Yuwono who explained that MNC needs around Rp. 1 trillion (US$89.84 million) to acquire the entire hotel and recreational complex.

The remaining stake in the property is owned in its by PT Bakrieland Development headed by Indonesian presidential hopeful Aburizal Bakrie.

Yuwono added: “The company will use funds from the recent rights issue and seek loans to plug the remaining financial needs."

MNC Land, controlled by media tycoon Hary Tanoesoedibjo, successfully raised Rp 2.18 trillion via the sale of new shares in a rights issue. 



MNC Land signed a sales agreement on July 25, 2013 in which they purchased a 19.09% share of the Bali Nirwana property for Rp. 326,33 billion. A subsequent agreement signed on August 2, 2013, provided for the acquisition of an additional 25% share of the property for Rp. 427.54 billion.

The funds needed to satisfy the two agreements were provided from a rights issue that is subject to final shareholder approval.

A third agreement signed on August 2, 2013 provides for the purchase of the remaining 55.91% of the Bali property, with provisions allowing payment over a 12 month period that will require an estimated Rp. 956 billion to consummate.

Bali Nirwana reported revenues of Rp. 62.47 billion over the first five months of 2013 resulting in a net loss of Rp. 37.85 billion for the same period.

Bali Nirwana ended 2012 with a net loss of Rp. 206.68 billion, a retreat from the Rp, 33.22 billion net profit booked in 2011. A downturn in total revenues to only 157.77 billion in 2012, as compared to Rp. 189.5 billion in 2011 – played a major role in the move from profitability to loss.

The company’s balance sheet show total assets for the Nirwana Resort of Rp. 824.1 billion.