Will SCMA Acquire 10% ANTV Shares?

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JAKARTA (TheInsiderStories) PT Surya Citra Media Tbk (IDX: SCMA), one of private television operator in Indonesia, is reportedly planning to acquire 10 per cent shares of PT Intermedia Capital Tbk (IDX: MDIA), a local media reported on Tuesday (13/02).

Apart from SCMA, other conglomerate company Sinarmas Group and several investors are also interested to buy MDIA’s shares.

Since 2014, Erick Thohir, one of MDIA shareholders aim to sell part of the owner television station ANTV shares to investors. Currently, MDIA owns 99.99 of ANTV’s shares and has transformed ANTV into a TV station focusing on lifestyle and children’s entertainment programs in 2009.

Previously, SCMA and businessman Edwin Soeryadjaya acquired part of PT Tempo Inti Media Tbk (IDX:TMPO) shares through subscribing the rights issue to be issued by the Indonesian broadcasting company.

Recently, the local media operator announced to have raised as much as Rp3.58 trillion (US$265.19 million) from shares issuance without preemptive rights for business expansion and working capital.

The unit of PT Elang Mahkota Teknologi Tbk (IDX: EMTK), will issue around 1.46 billion shares or around 10 per cent of SCMA’s fully paid up capital with price of Rp2,446 per share, based on the average price of closing stock trading price from Dec. 5, 2017 up to Jan. 11, 2018.

The managers of SCTV and Indosiar television stations are set to list the new shares at the end of February and get approval from the shareholders on Feb. 20. After the rights issue, EMTK shares diluted from 60.83 per cent to 55.30 per cent while public increased to 44.70 per cent.

SCMA will use the funds to support its business expansion. The company considers it necessary to expand in the form of acquisitions or cooperation with companies related to content and media.

The publicly listed media company started its journey from 1999. The media industry is one of the fastest growing industries in Indonesia and has become an integral part of the daily life of Indonesian people.

The Company was established under the name of PT Cipta Aneka Selaras in 2001 and changed its name to Surya Citra Media in 2002 by acquired of 99,99 per cent of SCTV shares.In 2013, SCMA, merged SCTV and Indosiar and continues its footprint by founded PT Surya Trioptima Multikreasi with share ownership of 60 per cent in 2014.

After one year, the company established a sub-holding in content production, PT Indonesia Entertainmen Grup, which has several subsidiaries engaged in production house, content production and marketing, and infrastructure.

MDIA itself has announced to issue global bonds worth US$ 300 million (Rp 4.05 trillion), to refinance debt owed by parent company PT Visa Media Asia Tbk (IDX: VIVA), according to a company disclosure.

MDIA will issue the bonds, which mature within 5 years, at a maximum interest rate of 10 per cent per annum. The issue is expected to take place in March 2018.

VIVA will use its subsidiary’s loan to repay principal and interest on debt incurred by CAT (Cakrawala Andalas Televisi) and LM (Lativi Mediakarya) amounting to US$78.37 million and US$ 52 million, or US$ 52 million in total; 130.45 million will consequently be recorded as VIVA debt to MDIA.

The company has signed a CAT-VIVA Loan Agreement of US$ 121.52 million at 1 per cent interest. Currently, its debt position has reached US$ 124.12 million, while debt to VIVA to LM amounts to US$ 52.08 million, at the same rate of interest.

MDIA is primarily engaged in content provisioning, focusing on family, children and entertainment, operating through subsidiary Cakrawala Andalas Televisi. PT Cakrawala Andalas Televisi runs and manages a local free-to- air television channel operated under the name ANTV.

The programs that ANTV broadcasts include reality shows, variety shows, comedies, animations, movies and documentaries, most of which are in-house productions.

Based on Ministry of Communication and Information data, currently at least 1,168 TV stations across Indonesia, hundreds of startups both locally and nationally, and there are approximately 8,760 hours of serving material each year.

Recently, the Government continues to encourage the implementation of Digital TV by continuing to migrate from analog to digital. Even Indonesia together with ASEAN countries has committed to full ASO (Analog Switch Off) by 2020.

US$1: Rp13,500

Email: linda.silaen@theinsiderstories.com