Independent News & Media today announced that it will purchase 20% of an Indonesian media group, and publisher of 'Republika', one of Indonesia's highest circulating national daily newspapers, PT Abdi Bangsa TBK ,for €4.8m.
PT Abdi Bangsa TBK is listed on the Jakarta Stock Exchange and has several media interests in national newspapers, online publishing, radio, magazine and book publishing, and outdoor advertising.
PT Abdi Bangsa TBK’s principal shareholder is Mahaka Media/ Erick Thohir – who will retain an interest of 52% post-issue in the enlarged capital structure of PT Abdi Bangsa TBK.
INM’s all cash consideration will be partly via a share rights placement for 170.0 million shares at Rupiah 250 per share and partly through the purchase of shares from an existing shareholder to bring INM’s stake upto 20.0%.
This transaction is subject to normal regulatory and PT Abdi Bangsa TBK shareholder approval.
As part of this transaction, it will be proposed to the shareholders of PT Abdi Bangsa TBK that Gavin O’Reilly, group chief operating officer of INM, be elected to the Board.
Commenting on the announcement, Gavin O’Reilly stated: "We are extremely pleased to be investing with Erick Thohir in PT Abdi Bangsa and to be part of the exciting and rapidly developing Indonesian media market. This strategic investment once again demonstrates INM’s commitment to and successful strategy in developing geographic diversity in high-growth markets.”