SBS Co. Ltd, a South Korean TV and radio production company, has agreed to invest 331 billion rupiah ($20.3 million) in the Indonesian integrated media and entertainment company PT MD Entertainment Tbk through a rights issue.
According to MD Entertainment’s disclosure to the Indonesia Stock Exchange (IDX), the company plans to issue 987 million new shares at an exercise price of 800 rupiah per share. MD Entertainment could potentially raise 791.8 billion rupiah ($48.8 million) from the rights issue.
The funds raised will be used to repay a loan to PT Bank Mandiri (Persero) Tbk and to support the company’s working capital needs.
Following the rights issue, MD Corp Enterprises’ shareholding in the Indonesian company will be diluted from 48.53% to 44.12%, while Manoj Punjabi, CEO of MD Entertainment, will see his ownership increase from 11.92% to 12.53%.
SBS will enter the cap table with a 3.8% stake in MD Entertainment.
For the full year 2024, MD Entertainment booked a net income of 22 billion rupiah, a sharp decline from 95 billion rupiah in the previous year. The drop in profitability was primarily due to a rise in cost of revenue, which climbed to 181 billion rupiah in 2024 from 139 billion rupiah in 2023. Nevertheless, the company’s revenue grew to 455 billion rupiah, up from 370 billion rupiah in 2023.
The investment by SBS marks its first strategic entry into the Indonesian media industry, strengthening ties between two major players in Asia’s entertainment landscape. The move is expected to enable future collaborations in content production and distribution across Southeast Asia.
MD Entertainment is an Indonesian media conglomerate known for producing blockbuster films such as KKN di Desa Penari, Ayat-Ayat Cinta, and long-running television series. Founded by Manoj and Dhamoo Punjabi, MD Entertainment became the first national film production company listed on the IDX when it debuted on August 7, 2018, under the name PT MD Pictures Tbk (ticker: FILM), raising around Rp 160 billion through its IPO.
MD operates across various segments, including film, television, animation, music, and over-the-top (OTT) digital platforms.
In October 2024, MD Entertainment completed the acquisition of PT Net Visi Media Tbk (NET TV). The station was previously rebranded as PT MDTV Media Technologies Tbk, with its full relaunch as MDTV taking place in February 2025. The move significantly expanded MD Entertainment’s reach into the free-to-air broadcast segment, complementing its content production capabilities.
