entertainment

South Korean Television Giant SBS Becomes Strategic Investor Of MD Entertainment (FILM)

South Korean broadcasting company, SBS Co., Ltd., will become a strategic investor in PT MD Entertainment Tbk. (FILM) through a capital increase action with pre-emptive rights (PMHMETD) I. Based on the prospectus, FILM will hold PMHMETD or rights issue by offering as many as 989.78 million new shares. The exercise price is set at IDR 800 per share, so the total funds are estimated to reach IDR 791.82 billion. PT MD Corp Enterprises, the largest shareholder of FILM with 48.53% ownership, will transfer 480.3 million HMETD to SBS and Manoj Dhamoo Punjabi. Of that amount, SBS (Seoul Broadcasting System), which popularized the variety show Running Man, will absorb 413.8 million shares purchased from PT MD Corp Enterprises with a transaction value estimated at around IDR 331 billion. Meanwhile, the remaining 66.5 million shares will be transferred to Manoj Dhamoo Punjabi. 

"SBS Co., Ltd. will use the company's internal cash to carry out the purchase of HMETD to be obtained from PT MD Corps Enterprises," was written in the FILM prospectus quoted on Friday (6/27/2025). SBS's involvement is stated in the HMETD Sale and Purchase Agreement on May 15, 2025 and strengthened through a statement letter dated June 19, 2025. SBS has stated its full commitment to exercise all of the share purchase rights. 

With this plan, SBS will immediately enter the list of FILM's main shareholders through ownership of 3.80% of shares. In the proforma scenario, SBS will be ranked seventh out of the nine largest shareholders after the rights issue. SBS is a private broadcasting company from South Korea that has been broadcasting since 1991. This company is known as one of the most influential television networks in South Korea and globally with a wide reach and diverse content such as drama, news, variety shows, and sports. Meanwhile, the company's controller, Manoj Dhamoo Punjabi, is committed to exercising all HMETD owned, including those obtained from PT MD Corp Enterprises with a total value of IDR 147.56 billion. If there are still remaining shares, two standby buyers, namely PT Samuel International and PT Samuel Sekuritas Indonesia, will absorb all remaining shares of 57.5% and 42.5% respectively according to the standby purchase agreement. The proceeds from the rights issue will be used by FILM to pay off debts to PT Bank Mandiri (Persero) Tbk. (BMRI) of IDR 748.2 billion, while the remainder is for working capital including financing for film and content production. 

Tag: MD Entertainment SBS South Korean Television Giant