Emtek Group, through its subsidiary PT Kreatif Media Karya (KMK), confirmed to have acquired majority of KapanLagi Network (KLN) shares, as well to announce business unit synergy for both companies.
KMK will enter KLN with 50% (plus 1) shares to be fully absorbed by KMK. There will be a business unit synergy between two companies in this transaction. KLN will own 99.9% shares of Liputan6.com, a digital media under KMK.
This is KLN’s second time of ownership changing in the last three years. Earlier in April 2015, the company sold a major share (52%) to MediaCorp Singapore. Reportedly, MediaCorp still holds minority shares in KLN after KMK acquisition.
Quoted from Katadata and CNN Indonesia, the impact of this synergy has changed the organizational structure. KLN’s Founder Steve Christian will serve as Chief Operating Officer. Meanwhile, the President Director of KMK Digital Media Group Karaniya Dharmasaputra will be the Deputy COO.
“The transfer is being processed legally with the current law and regulation, and soon to be effective upon approval of Liputan6.com and KLN Shareholders’ General Meeting,” KMK’s CEO Adi Sariaatmadja said.
He said that the company will keep the commitment to develop media business line by adding some digital media under KLN. Those are Kapanlagi.com, Merdeka.com, Bola.net, Vemale.com, Fimela.com, Brilio.net, Famous.id, and Dream.co.id.
As for now, Emtek Group has owned some media such as Liputan6.com, Bola.com, Bintang.com, also television media as SCTV, Indosiar, and O Channel.
The company sees a strong synergy between TV and digital media in the future. Therefore, this partnership is expected to help KMK to be a digital media group with the complete vertical media in various segments. Along with the anticipated increase of internet users by millennials.
KLN’s CEO Steve Christian said further that this acquisition is a form of both companies’ anticipation to compete with media that has been presenting false and imbalance news.
“We unite to be the first in reaching more than 100 internet users in Indonesia. Supported by a combined team of more than 1,000 people,” he said.
He also confirmed that the success will depend on the due diligence process which on progress by both parties. The process deals with terms negotiation and transaction needs of the acquisition.
Before the announcement, Emtek Group acquisition over KLN has been rumored since October 2017. DailySocial reported the leading media from both companies such as KapanLagi and Merdeka will become independent properties. While others that intersect with Emtek Group will be merged.
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Original article is in Indonesian, translated by Kristin Siagian