Indonesia's MNC dials up Linktone takeover

HONG KONG – Indonesia's second largest media company PT Media Nusantara Citra has succeeded with a take-over of NASDAQ-listed Chinese online entertainment company Linktone. Company will pay $91.2 million for a controlling 57% stake. Following a tender offer, MNC will pay $22.8 million for a 6 million ADRs, equivalent to 60 million ordinary shares. It is also subscribing to an issue of 180 million new Linktone shares at a cost of $68.4 million. "The completion of the MNC investment and the increase in our cash balance by $68.4 million will enable us to aggressively implement our cross media strategy in China and other Southeast Asian markets," Michael Li, Linktone CEO, said. Shanghai-based, Linktone provides services to wireless consumers and corporate customers with a particular focus on media, entertainment and communications. Services are promoted through Linktone's and its partners' cross-media platform and through the networks of China's mobile phone operators. MNC has operations spanning content production, content distribution, nationwide free-to-air television networks, 24-hour program TV channels, newspaper, radio networks and online media. It claims the largest content library in Indonesia, comprising 68,000 hours of entertainment and news content, which is increasing by more than 10,000 hours yearly. Following the takeover Linktone board will comprise Hary Tanoesoedibjo, Elaine La Roche, Felix Ali Chendra, Sutanto Hartono, Thomas Hubbs, former Yahoo director Allan Kwan, Michael Li, Agus Mulyanto and Jun Wu.