Apr 5, 2011

Indosiar surges 3.45% on tender offer

PT Indosiar Karya Media Tbk, parent company of Indosiar television, today surged 3.45% to Rp900 after a tender offer for the shares set at 15.56% premium level. 
PT Elang Mahkota Teknologi Tbk (Emtek) today announced the tender offer for the remaining shares of Indosiar Media at the price range of Rp900-Rp1,040 per share.
The tender offer of 1.47 billion shares will be held after Emtek completes the acquisition of 27.42% shareholding or 551.71 million shares in Indosiar at Rp900 per share.
Emtek, parent company of Surya Citra Televisi and O'Channel TV, is also seeking IDR1.50 trillion loan facilities from several stellar lenders. The financing will be used by Emtek to support the tender offer.
In total, Emtek requires Rp2.03 trillion in financing to underpin the takeover and the tender offer. The actions are expected to convey Emtek becoming a leading broadcasting group of company in Indonesia.
To support the deals, according to a prospectus published today, Emtek is aiming to use internally generated cash flow of Rp496.54 billion, Rp866.31 billion of bank loan facilities, and the proceed of issuing new shares without preemptive rights of Rp666.55 billion.
Emtek, controlled by Eddy K. Sariaatmadja and his younger brother Fofo Sariaatmadja, is keen to acquire 27.42% shareholding or 551.71 million shares in Indosiar from PT Prima Visualindo, a company controlled by Indonesian tycoon Anthoni Salim, owner of Salim Group. 
Shares pledge 
To guarantee the payment of the loan facilities, Emtek will enter into shares pledge agreement on 85.78% shareholding or 1.65 billion shares in PT Surya Citra Media Tbk (SCMA), parent company of Surya Citra Televisi, with several lenders.
According to the closing level of SCMA on March 31 at Rp4,050 per share, the shares pledge ammounted to Rp6.68 trillion.
Emtek is also aiming to raise its equity by issuing 10% of new shares or 512.73 million shares without preemptive rights at Rp1,300 per share, enabling it to obtain Rp666.55 billion proceed.
Eddy Sariaatmadja and Fofo Sariaatmadja are now controlling 18.86% and 5.28% shareholdings in Emtek, while Susanto Suwarto and Piet Yaury own 12.56% and 10.56% stakes.

Disclosure: No position at the stock mentioned above.  

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