Nonprofit investment organization Media Development Investment Fund has invested US$750,000 in publicly listed digital media company PT Arkadia Digital Media.
The funds, channeled through MDIF’s private equity fund Emerging Media Opportunity Fund I, LP, come in the form of convertible bonds, which will be converted into the company’s shares with a nominal value of Rp 1,400 (97 US cents) apiece. The debt papers have a yield of 10 percent per annum and will be due on June 30, 2023, according to an Arkadia filing at the Indonesia Stock Exchange (IDX).
In addition to the convertible bonds, MDIF will also provide a $250,000 loan for Arkadia, which owns news portal Suara.com, as well as sports portal Bolatimes.com and advertisement platform Iklandisini.com. The loan will also be due on June 30, 2023.
“Our investment will enable the company to further develop its regional content and networks, providing more locally based news and information that shines a light on issues that would otherwise be ignored,” MDIF CEO Harlan Mandel said in a statement.
Arkadia recorded a revenue increase of over 35 percent year-on-year (yoy) to Rp 37.66 billion last year. Its net profit jumped 30.7 percent yoy to Rp 139.83 million.
It is currently preparing a digital ecosystem that integrates news with community networks, local media networks and micro, small and medium enterprise services in various regions nationwide through a news commerce platform. It aims to strengthen the sustainability of media outlets in these regions.
“This funding will greatly assist the company’s effort in developing the digital ecosystem that we are currently building,” said Arkadia CEO William Martaputra.
Stocks of Arkadia, traded at the IDX under the code DIGI, were unchanged during Friday’s session at Rp 1,705 apiece. Over the past year, the stocks have gained 0.59 percent. (prm)
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