Planned merger halts SCTV, Indosiar trading

JAKARTA: Trading of shares in Indosiar Karya Media (IDKM), Surya Citra Media (SCMA) and its parent company Elang Mahkota Teknologi (ETMK) were suspended Tuesday amid plans to merge the two national television stations, the Indonesia Stock Exchange (IDX) said.

IDX said in a statement that with Indosiar’s corporate announcement on Monday about the planned merger with Surya Citra and Elang Mahkota, “the Indonesia Stock Exchange has decided to temporarily suspend trading of SCMA, IDKM and EMTK shares until further notice.”

“The stock exchange is currently waiting for further information from the three firms and is asking all parties involved with the firms to pay attention to their statements,” the bourse said.

IDX supervisory director Urip Budiprasetyo said the bourse gave a three-day deadline for the firms to present their merger plans.

Shares of Indosiar, Surya Citra and Elang Mahkota soared 6.32, 8.57 and 13.56 percent on Monday after Indosiar announced it had secured preliminary approval from the board of commissioners to merge with Surya Citra and Elang Mahkota.

Up to the suspension of the shares, Indosiar shares were trading at Rp 1,010 (11 US cents) while Surya Citra was at Rp 3,800 and Elang Mahkota at Rp 1,340. — JP