JAKARTA (TheInsiderStories) – Indonesia’ media company, PT Surya Citra Media Tbk (IDX:SCMA) plans to acquire four new online media companies aiming to strengthen its position as a media company.
Based on information disclosure from the Indonesia Stock Exchange, the planned acquisition is 99 percent of shares in PT Vidio Dot Com, 51 percent at PT Kapanlagi Dot Com Network, 99 percent of shares in PT Binary Ventura Indonesia which owns 60 percent of shares in PT Estha Yudha Ekatama and 50 percent stake in PT Samara Media Entertainment.
The four online media have businesses that can complement Surya Citra Media. Vidio.com is a video streaming service that also provides sports, music, entertainment and film content services. Kapanlagi Network oversees several online media such as liputan6.com, merdeka.com, kapanlagi.com, fimela.com, bola.com, bola.net, brilio, otosia.com and dream.co.id.
Estha Yudha Ekatama owns space ads and Samara Media Entertainment has a film studio business, marketing influencer, event promoter and e-sports.
Recently, the company had agreed conditional sale and purchase three of four acquisitions which are 99 percent of PT Mediatama Anugrah Citra on vidio.com with a value of Rp104.1 billion (US$7.38 million), 51 percent of the shares of PT Creative Media Works at Kapanlagi Networks with a value of Rp174.7 billion, and 99 percent of PT Elang Mahkota Teknologi Tbk at Binary Ventura Indonesia with a value of Rp45.45 billion.
SCMA is also in the finalization stage of purchasing a 50 percent stake in Samara Media Entertainment which is owned by PT Benson Kapital Indonesia, Bernhard Agus Subiakto and PT. Benson Media Creations.
Director Surya Citra Media Rusmiati said in an official statement, the acquisition would enhance and strengthen SCMA’ performance. On the other hand, it strengthens the position as an integrated media and content company.
“This step connects television viewers and online media users in Indonesia,” he said.
She said, it would disclose further information about the projected income and profit contributions of each company that would be acquired, if the process had been completed.
At the end of last year, SCMA made a buyback with a value of Rp3 trillion or as many as 14 billion shares. The buyback was done to increase the value of shares by returning excess cash flow to shareholders. He added, through this action the company’s return on equity would increase so that it would have a positive impact on shareholders.
Last year, SCMA also increased its capital through a private placement mechanism through the issuance of 1.46 billion shares or the equivalent of 10 percent of the issued and fully paid capital with a nominal value of Rp50 per share.
The implementation price is at least Rp2,446 per share. So, SCMA will reap fresh funds of around Rp3.58 trillion through the corporate action. Funds from a private placement will be used for business development by acquiring new media companies. Because the acquisition is the most optimal step to boost the performance.
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