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AKARTA: Television station Indosiar Karya Media has secured preliminary approval from its board of commissioners to merge with a subsidiary of Elang Mahkota Teknologi, Surya Citra Media, which owns TV station SCTV.

“The board of commissioners has agreed on the merger plan as long as it is executed based on the existing regulations,” Indosiar president director Handoko said in a statement sent to the Indonesia Stock Exchange (IDX), without providing further details. Previous rumors have said that the nationally broadcast television stations might merge, but none of the related executives confirmed the speculation.

Shares of Indosiar (IDKM) and Surya Citra (SCMA) soared by 6.32 and 8.57 percent respectively following the announcement while the broader benchmark Jakarta Composite Index (JCI) fell 0.11 percent.

Indosiar shares traded at Rp 1,010 at Monday’s close versus Rp 950 in the previous session, while Surya Citra closed at Rp 3,800 versus Rp 3,500 on Friday.

Indosiar’s shares soared 778 percent in the past year while Surya Citra’s climbed 375 percent, outperforming JCI’s 36 percent jump. — JP