Indonesia Media Partners LLC, an affiliate of Saban Capital Group, Inc., will acquire the equivalent of 5 percent of PT Media Nusantara Citra Tbk's outstanding shares from PT Global Mediacom Tbk, an Indonesia-based media group, the companies announced Monday. Indonesia Media Partners will have a 27-month call option to acquire the equivalent of 2.5 percent of MNC's outstanding shares.
MNC also announced that it will increase its dividend payout, beginning with the dividend payable in 2012, to at least 45 percent of net income generated during the preceding year.
Here's the release:
JAKARTA, INDONESIA and LOS ANGELES, CA (October 17, 2011) – Indonesia Media Partners LLC, an affiliate of Saban Capital Group, Inc., and PT Global Mediacom Tbk (“Global Mediacom”) have entered into a definitive agreement today whereby Indonesia Media Partners will acquire 692,336,150 shares of PT Media Nusantara Citra Tbk (“MNC”), equal to 5.0% of MNC’s outstanding shares, at IDR 1,000 per share and a 27 month call option to acquire an additional 346,168,075 shares, equal to 2.5% of MNC’s outstanding shares, from Global Mediacom.
MNC also announced that it will increase its dividend payout, beginning with the dividend payable in 2012, to a minimum of 45% of net income generated during the preceding year.
Haim Saban, Chairman and Chief Executive Officer of Saban Capital Group said, “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. As the largest media business in Indonesia, and through the leadership of Hary Tanoesoedibjo, MNC will be a prime beneficiary of Indonesia’s burgeoning consumer economy and we believe there are multiple areas of strategic cooperation between Saban Capital Group and MNC.”
Adam Chesnoff, President and Chief Operating Officer of Saban Capital Group said, “We view MNC as one of the most attractive media companies globally given its market leadership, focus on original content creation, robust future growth prospects and strong cash flow generation. Hary Tanoesoedibjo has successfully built Indonesia’s largest vertically-integrated media and content business, along with the high-caliber management team of MNC, and we are delighted to support Hary’s vision for MNC. MNC’s core businesses in free-to-air television broadcasting and content creation are well-aligned with Saban Capital Group’s track record of investing in leading media businesses globally. We view our investment in MNC as strategically important to the continued expansion of Saban Capital Group’s investment franchise in Asia.”
Hary Tanoesoedibjo, Chief Executive Officer of Global Mediacom and MNC said, “Saban Capital Group is a leading investor in the media, entertainment and communications sectors globally. Saban Capital Group’s investment is a strong vote of confidence on the long-term growth prospects of MNC. We are very particular in selecting significant shareholders in MNC and have a strong preference for investors that can partner with MNC for the achievement of long-term, sustainable growth. 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.”
