JAKARTA (TheInsiderStories) – PT Surya Citra Media Tbk (IDX: SCMA), a local media operator announced to raises as much as Rp3.58 trillion (US$267.16 million) from shares issuance without preemptive rights for business expansion and working capital, said the company on Friday (12/1).

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 at Rp2,446 per share, followed 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 set to list the new shares 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.

Previously on Jan. 8, SCMA has announced will abosorbe PT Tempo Inti Media Tbk (IDX:TMPO) through subscribing the rights issue to be issued by the company. Tempo Inti Media is the publisher of Tempo magazine, newspaper and online.

In a filing to the Indonesian Stock Exchange, Tempo unveils its plan to issue 333 million of new shares at price of Rp300 per share. The existing main shareholder Tempo Foundation which currently holds 25.01 per cent of the company’s shares has decided not to subscribe the rights issue.

As a result, the foundation’s shares in the company will dilute. Businessman Edwin Soeryadjaya plans to purchase 16.3 million units of shares, Surya Citra Media 8.3 million and the remaining shares to be purchased by other investors, including PT Sukses Perdana Mandiri, PT Sinar Ganda Jaya and Burlingham International Ltd.

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.

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.

Considering the ASEAN Country’s commitment to ASO 2020, then the delay in the implementation of ASO in Indonesia will lead to interference with neighboring countries. There are several TV digitization objectives: efficiency of spectrum frequency usage; efficiency of broadcasting industry infrastructure; improvement of broadcast quality; maintain the diversity of ownership; grow the content industry; and digital dividend.

US$1: Rp13,400

Written by Linda Silaen, Email: linda.silaen@theinsiderstories.com