News
 17.10.2011 Saban Capital Group, a Los Angeles-based investment firm, is buying 5 percent of Indonesia’s Media Nusantara Citra for Rp 692.3 billion ($78.2 million). The investment firm, which specializes in media, entertainment and communications, can also purchase an additional 2.5 percent in Media Nusantara Citra (MNC), which is controlled by Global Mediacom, the country’s largest media company. “We are strong believers in the growth prospects of the Indonesian economy, its positive consumer demographic trends and the growth of its media and content industries,” Haim Saban, the chairman and chief executive of Saban Capital, said in a statement. Saban Capital will acquire 692.3 million MNC shares, equivalent to 5 percent of MNC’s total outstanding shares, at Rp 1,000 per share, though it can also purchase an additional 346 million shares within 27 months. Both sides are expected to complete the transaction by the middle of November, with Saban Capital working through its affiliate, Indonesia Media Partners. UBS Securities will advise Saban Capital in the transaction, while Morgan Stanley will advise MNC, which is led by president director Hary Tanoesoedibjo. “We are very particular in selecting significant shareholders in MNC, and we have a strong preference for investors that can partner with MNC for the achievement of long-term, sustainable growth,” said Hary, who is also chief executive officer of MNC’s parent company, Global Mediacom. “I believe Saban Capital Group meets our criteria and we are very delighted to have them as a shareholder and a partner on various areas of strategic cooperation,” he added. MNC is an integrated media company in Indonesia that runs three national free-to-air television networks — RCTI, MNC TV and Global TV — with nearly 40 percent audience share, according to Nielsen research. It also owns a newspaper, a tabloid, a magazine, radio networks, online media, an advertising agency and a talent management. On a subscription basis, Global Mediacom owns MNC Sky Vision, one of the country’s largest pay-TV operators, through the brand services Indovision and Top TV. Saban Capital was established in 2001 by Haim Saban, who was the founder of Fox Family Worldwide, which he owned in equal partnership with News Corporation until its sale to the Walt Disney Company in October 2001. Saban achieved great success from the hit children’s TV series “Mighty Morphin Power Rangers,” and according to Forbes magazine, he ranked 287th among the world’s richest people in 2010. His company’s acquisition of MNC shares was a positive move for both sides of the deal, said equity analyst Reza Priyambadha of Indosurya Asset Management. “The competition in the local media is tough, and Saban could bring its expertise to MNC,” Reza said. “MNC could learn from Saban’s experience, which will help MNC to maintain its dominance in the local media sector.” Saban Capital will also gain from MNC’s growth, Reza said. “The reason why Saban is interested, I think, is because MNC is the biggest media company here,” he said. “So they [Saban] would enjoy MNC’s profit, which is likely to remain strong given their dominance.” MNC also said it will increase its dividend payout, beginning with dividend payable in 2012, to a minimum of 45 percent of the net income generated during the preceding year. MNC’s shares were up 0.9 percent to close at Rp 1,090 on Monday. The Jakarta Globe |
Latest news
21.10.2011 |
Statement by the Chair of ASEAN on the Floods in Southeast Asia |
20.10.2011 |
AUCTION!!! |
20.10.2011 |
Heads of CIS Governments signed free trade agreement |
19.10.2011 |
President announces results of cabinet reshuffle |
18.10.2011 |
Azerbaijan President Ilkham Aliyev to visit Kazakhstan ... |
06.10.2011 |
Indonesia to host int’l police conference in Bali |
