Saban Invests in Indonesia’s MNC

JAKARTA/LOS ANGELES: Saban Capital Group has bought a 5-percent stake in the Indonesian media company Media Nusantara Citra (MNC) for 692 billion rupiah ($78.2 million).

In a deal with majority owner Global Mediacom, Saban Capital Group subsidiary Indonesia Media Partners takes on 5 percent of MNC at 1,000 rupiah a share, for a total of 692.3 million shares ($78.2 million). Saban also has a 27-month call option to acquire a further 346 million shares, giving it an extra 2.5 percent. The transaction is expected to close by mid-November.

Haim Saban, the chairman and CEO 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, the president and COO of Saban Capital Group, added, “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, the CEO 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.”