Bimantara buys 25 percent stake in 'Metro TV'
Bimantara buys 25 percent stake in 'Metro TV'
JAKARTA (JP): Publicly listed PT Bimantara Citra agreed on
Tuesday to invest Rp 40 billion (US$3.7 million) in equity
participation in the newly operated TV station PT Media Televisi
(Metro TV).
Bimantara's newly appointed president, Joseph Dharmabrata said
the company had been given a 25 percent ownership in the new
television station in return for its investment.
The remaining 75 percent share of Metro TV is controlled by
Surya Paloh, the owner and publisher of Media Indonesia daily.
"We're confident that Metro TV will survive despite the tight
market," he told reporters, following the company's annual
shareholders meeting.
He said that Bimantara, which controls a 69.8 percent stake in
Indonesia's first private TV station Rajawali Citra Televisi
Indonesia or RCTI, saw TV broadcasting as a promising business,
given a continued increase in advertisement spending on TV.
According to him, spending on TV advertisments will grow about
30 percent this year, compared with 40 percent growth in 2000,
and 22 percent in 1999. But he did not provide any figures.
Metro TV was launched to air as the first news TV station in
November last year, initially controlled by Surya Paloh with a 99
percent stake and his friend Rahni Lowhur with 1 percent stake.
Joseph said Bimantara would also provide Metro TV Rp 125
billion in loans to help the TV station to procure broadcasting
equipment.
To date, Bimantara is focused toward business multimedia and
broadcasting, telecommunications and transportation after selling
its other business units in property and financial services last
year.
In the meeting, shareholders also agreed to divest Bimantara's
51 percent ownership worth $13 million in cargo company Indonesia
Air Transport to another Bimantara's subsidiary Cardig Air,
Joseph said.
The shareholders also approved the sale of a 15 percent share
worth $55.8 million in Bimagraha Telekomindo to Indosat, he
added.
"Bimantara will allocate the funds acquired from the
divestment to finance the expansion of its main businesses," he
said, adding that Bimantara and its subsidiaries had settled all
of their debts.
In the meeting, the shareholders also agreed to change the
composition of the board of commissioners and board of
executives.
In the new board, Rosano Barack was installed as chief
commissioner, with Hary Iswanto Tenoesudibyo as deputy chief
commissioner. The members of the supervisory board include M.
Tachril Sapi'ie, John Prasetyo, Shadik Wahono and Djoko Leksono
Sugiarto.
Josep Dharmabrata was named as the new president, Hidayat
Tjandradjaya as new vice president, with Nurhadiyono Nurjadin and
A.Edwin Kawilarang as directors.
Joseph said Bimantara's revenues increased 25 percent to Rp
1.76 trillion from Rp 1.4 trillion in 1999, while its net profit
rose to Rp 202.5 billion after suffering a loss of Rp 218 billion
in the previous year.
The revenue came mainly from the transportation business unit
which contributed 46 percent of the total, while the multimedia
business unit contributed 38 percent.(05)