entertainment

South Korean TV Company Enters FILM, Because Of Danantara?

PT MD Entertainment Tbk (FILM) is preparing to hold a capital increase action by providing pre-emptive rights (HMETD) or rights issue through an offering of 989,779,796 shares (9.09%) of the capital with an exercise price of IDR 800 per share. In this corporate action, a TV and radio company from South Korea (Korsel) will enter. 

According to the schedule, FILM will conduct the HMETD trading in the period 10-18 July 2025 and is estimated to be able to collect funds of IDR 791 billion. As much as IDR 748 billion from the rights issue proceeds will be used by FILM to pay all principal debts to PT Bank Mandiri Tbk (BMRI). 

Meanwhile, the rest will be used by FILM as working capital such as film production costs, content, employee salaries, and utility costs such as routine operational costs including electricity, water, and internet. 

FILM deliberately accelerated the payment of all principal loans which were originally due in 61 months since the signing of this Mandiri facility agreement with the consideration of wanting to improve financial performance. 

"Accelerated payments will reduce the company's interest costs, and this is expected to increase the company's profitability with efficiency in interest expenses through a decrease in the amount of debt owed by the company," wrote FILM management in the prospectus quoted on Sunday (6/29/2025). 

FILM previously used the proceeds from a Bank Mandiri loan with an interest rate of 9.25% to take over or acquire PT Net Visi Media Tbk (NETV) which has now changed its name to PT MDTV Media Technologies Tbk. 

The holders who are entitled to receive rights in this fundraising action are those whose names are registered on July 8, 2025. They are entitled to have one HMETD where one HMETD gives the holder the right to buy new shares offered. 

Meanwhile, for shareholders who do not exercise their rights, the percentage of their share ownership will be proportionally diluted by 9.09% after the rights issue is implemented. 

Tag: Danantara FILM South Korean TV Company