ABC Development Corp, which runs TV5, Philippine, is buying into Indosiar, a publicly-listed national television station in Indonesia majority owned by Anthoni Salim, chairman of First Pacific Co Ltd.
“We will partner with Indosiar. This will be an investment by TV5,” said President Ray Espinosa at a press briefing yesterday as reported by abs-cbnnews.com.
He did not disclose further details but said this was going to take place after TV5 has commenced its international business, which means expanding its reach as far as Europe, North America, Middle East, and Japan.
“For our global business, we will form an international company via a joint venture with PLDT [Philippine Long Distance Telephone Co. This expands our reach in the international side. We plan to launch this in the first quarter of next year. Also, TV5 will be present in the region via an investment in Indosiar,” explained Espinosa.
PT Indosiar Karya Media Tbk (IDKM), parent company of Indosiar, today sank 1.82% to IDR540 per share, representing IDR1.09 trillion market capitalization and 24.58x price to earning ratio.
"I am in a middle of meeting," Benny Santoso, executive of Salim Group, said when confirmed about the news.
He hasn't replied a confirmation sent by Bisnis via short message service.
Indosiar Karya Media Corporate Secretary Stelly Maria said that she already read the news. "We haven't been informed by our shareholders," she said.
Salim family controls 27.24% holding in Indosiar Karya Media, parent of Indosiar TV, via PT Prima Visualindo. Citibank Singapore holds 8.5%, PT Dinamika Usaha Jaya holds 5.09%, and public investors own 59.17%.
Indonesia is the fourth most populous country in the world. The media investment of TV5 is sure to fuel the organization’s aim to be multimedia leader in Asia.
“This will allow us to work closely with Indosiar. This is in line with our goal to be a multimedia company,” said Espinosa.
Earlier, PLDT chairman Manuel V. Pangilinan said he and Anthoni Salim, chairman of the phone giant’s parent firm First Pacific, were in discussion to forge a partnership involving the broadcast firms.
Pangilinan said both firm at an exchange of the networks’ talents. After all, Pangilinan said, there are synergies between the two TV outfits.
Indosiar’s parent company, PT Indosiar Karya Media Tbk, is a member company of the Salim Group conglomerate. PLDT, meanwhile, is owned by First Pacific and Japan’s NTT Communications and NTT DoCoMo.
“I have talked to him. I told him if he wants we can just put the two together so we can share each others’ talents. Our journalists are the best in the region. It’s very easy to learn Bahasa Indonesia. We have been talking about it and I told him that we are interested to help you….Maybe put the two stations together or MediaQuest to invest there,” Pangilinan said previously.
Espinosa added that TV5 is expected to post between P850 million and P900 million in revenues this year. The bulk of the projected revenues will mainly come advertising revenues of TV5 programs.
“In 2 years, we are probably going to be Number 1 and by middle of next year we would have already covered 95% of national urban areas,” added Espinosa.
Disclosure: No position at the stock mentioned above.
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