China’s Tencent, through its subsidiary Image Frame Investment (HK), has sold a 3% stake in the Indonesia-listed production house MD Entertainment for 302 billion rupiah ($19 million).
According to the company’s disclosure to the Indonesia Stock Exchange (IDX), Tencent divested its stake in MD Entertainment on November 12, 2024, as part of Tencent’s partial realisation on its investment. Before the divestment, the Chinese firm held a 14.5% stake, which has now fallen to 11.5%.
Tencent sold 251.77 million shares (3% stake) in MD Entertainment at 1,200 rupiah per share—65% lower than MD Entertainment’s market price of 3,480 rupiah per share in morning trade on Monday. The Chinese firm invested 695 billion rupiah in MD Entertainment through its unit, Image Frame Investment, in 2021.
Besides Tencent, PT MD Global Investments is the majority shareholder of the company with a 49.38% stake. Meanwhile, Manooj Dhamoo Punjabi owns 17.11%.
On November 13, 2024, MD Entertainment finalised its acquisition of PT Net Visi Media Tbk for 1.65 trillion rupiah ($107 million). As part of the acquisition, Net TV has been renamed PT MDTV Media Technologies and integrated into the MD Entertainment ecosystem. This move aims to strengthen the company’s presence in traditional TV broadcasting across Indonesia, complementing its current focus on movie production.
The company recorded a net profit of 103 billion rupiah in the first nine months of 2024, up 20.8% compared to the same period last year at 85.2 billion rupiah. Most of the profit came from two blockbuster movies — ‘Ipar Adalah Maut’ and ‘Badaruwhi: Di Desa Penari’. Its revenue grew by 18.6% to 348.1 trillion rupiah from 293.6 trillion rupiah during the period.
MD Entertainment plans to expand its coverage internationally by partnering with big Hollywood studios. In March 2024, MD Entertainment announced its partnership with global movie distribution, LIONSGATE Entertainment Crop, and produced ‘Dancing Village: The Curse Begins’, which was successfully distributed in the US.
The company is also exploring partnerships with big Hollywood production houses as well as pursuing inorganic strategies in other countries. It also plans to distribute the movie content to other channels through TV stations and OTT platforms. It will open new revenue streams for the company, including advertising revenue.
Founded in 2002 by Manooj Punjabi and his father, Dhamoo Punjabi, MD Entertainment is the only production house listed on IDX. The company went public in 2018 after raising 416 billion rupiah in an initial public offering.