The Vivendi logo sits on display at a press conference in Paris, France. (Photographer: Fabrice Dimier/Bloomberg)

Vivendi Eyes Stake in Trump Partner's Indonesia TV Arm

(Bloomberg) -- Vivendi SA, the French conglomerate backed by billionaire Vincent Bollore, is competing with Argyle Street Management to invest in the television operations of Indonesia’s largest media company PT Global Mediacom, people with knowledge of the matter said.

Vivendi’s broadcasting arm Canal+ is in early talks to spend more than $400 million buying stakes in two units of Global Mediacom, the people said, asking not to be identified because the information is private. It has expressed interest in acquiring roughly half of PT MNC Vision Networks, which controls the group’s listed pay-TV arm and its high-speed internet unit, the people said.

Vivendi Eyes Stake in Trump Partner's Indonesia TV Arm

The companies are part of Indonesian tycoon Hary Tanoesoedibjo’s MNC Group conglomerate, which has partnered with U.S. President Donald Trump’s family business on property developments in the country. As part of the deal, Canal+ is also negotiating the purchase of about 10 percent of PT Media Nusantara Citra, which runs the group’s free-to-air TV operations, the people said.

Shares of Global Mediacom jumped as much as 12 percent in Jakarta trading Tuesday, the most intraday in six months. Media Nusantara Citra rose as much as 2.7 percent, the most intraday in more than three weeks.

Argyle Street, a Hong Kong-based investment firm, has separately expressed interest in buying about 49 percent of MNC Vision Networks, the people said. It has proposed first buying 25 percent of the company from Global Mediacom in a deal valuing the business at about $550 million, according to the people.

The fund would later subscribe for new stock in a subsequent initial public offering of MNC Vision Networks, which it expects could take place next year, the people said. MNC Vision Networks is the biggest shareholder of Jakarta-listed PT MNC Sky Vision, one of Indonesia’s largest pay-TV operators.

The stake the investors can ultimately acquire could be limited under Indonesian regulations, according to one of the people. Discussions are at a preliminary stage, and they could fall apart, the people said. Other bidders may still emerge, according to the people.

Representatives or officials at MNC Group, Canal+ and Argyle Street declined to comment.

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