Feb 24, 2011

SCMA becomes surviving company

PT Surya Citra Media Tbk (SCMA) will become a surviving company during the merger plan between PT Indosiar Karya Media Tbk, PT Elang Mahkota Teknologi Tbk, and SCMA. The merger is expected to be completed by June 2011.
President Director of Indosiar Karya Media Handoko said that the subsidiary of Elang Mahkota Teknologi, Surya Citra Media (the operator of Indonesia’s private channel, SCTV), shall become the holding company of Indosiar Karya Media supposes such merger takes place.
“We expect to tap this corporate action at the very least in the end of June 2011. If the structure is merger, there is a strong indication that Surya Citra Media shall serve as the surviving company,” he said in an information disclosure to Indonesia’s Stock Exchange today.
Handoko added that this corporate action may be canceled if this merger will not grant any commercial benefits or earn any necessary licenses from the related institutions.
Such information disclosure took place after IDX temporarily suspended the stock trading of those three listed companies in the regular market. The stock prices of those three companies continue to rise after it announced the merger plan.
Disclosure: No position at the stock mentioned above.  

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