Emtek Group Confirms Acquisition of KapanLagi Network

The Emtek Group, through its subsidiary PT Kreatif Media Karya (KMK), confirmed that it would control the KapanLagi Network (KLN) stake, as well as announcing the business unit synergy between the two.

KMK will enter KLN through the issuance of new shares of 50 percent and 1 share which will be fully absorbed by KMK. In this transaction there will also be business unit synergy between the two companies. KLN will own 99,9 percent of Liputan6.com, the digital media under KMK.

This is the second time in the last three years that KLN has changed ownership. Previously on the moon April 2015 it sold its majority stake (52%) to MediaCorp Singapore. MediaCorp reportedly still holds a minority stake in KLN after the acquisition by KMK.

Quoted from Dataword and Indonesian CNN, the impact of this business synergy also changes the organizational structure. KLN founder, Steve Christian, will serve as Chief Operating Officer. While the President Director of KMK Digital Media Group Karaniya Dharmasaputra serves as Deputy COO.

"This transfer is being processed according to Indonesian laws and regulations and will be effective after obtaining approval from the Liputan 6.com and KLN General Meeting of Shareholders," said KMK CEO Adi Sariaatmadja.

He said the company continues to be committed to developing its media business line activities by adding several digital media under KLN. Some of these media are Kapanlagi.com, Merdeka.com, Bola.net, Vemale.com, Fimela.com, Brilio.net, Famous.id, and Dream.co.id

Currently, the Emtek Group has several media under it, such as Liputan6.com, Bola.com, Bintang.com, and television media SCTV, Indosiar, and O Channel.

His party sees that there is a fairly strong synergy between TV and digital media in the future. For this reason, it is hoped that this partnership will make KMK a digital media group with the most complete vertical media from sharing news segments. Along with the anticipation the number of internet users from millennials continues to increase.

KLN CEO Steve Christian added that this acquisition plan is a form of anticipation for the two companies in facing competition from the media which has been presenting fake and unbalanced news.

"We are one to be number one by reaching more than 100 million internet users in Indonesia. Especially with a joint team of more than 1.000 people," he said.

He also reiterated, this success will depend on the due diligence process which is actually still in the process of both parties. This process discusses the negotiation of various terms and needs of the acquisition transaction.

Before this announcement circulated, news of the Emtek Group acquiring KLN had already been announced blow since October 2017. DailySocial reported that the leading media from the two companies such as KapanLagi and Merdeka will become independent properties. Meanwhile properties that have slices with the Emtek Group will be merged.