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By Andjarsari Paramaditha
JAKARTA Oct 11 Indonesia's stock exchange
suspended trading on Friday in Media Nusantara Citra Tbk
PT and two affiliates after a Supreme Court ruling the
previous day against the company in a long-running dispute over
ownership of a television firm.
The other two suspended companies are Global Mediacom Tbk PT
and MNC Investama Tbk PT and are controlled
by media mogul Hary Tanoesoedibjo.
The dispute centres on ownership of the free-to-air station
MNC TV, formerly called TPI when it was under the control of
Siti Hardiyanti Rukmana, popularly known as "Tutut" and the
eldest daughter of former autocratic President Suharto.
Rukmana had handed over a majority stake in the TV station
to another firm, Berkah Karya Bersama, in exchange for
outstanding debts. Berkah then sold ownership to Tanoesoedibjo's
group in 2006 following a shareholder's meeting the previous
year and which Rukmana had argued was illegal.
The Supreme Court ruled in her favour.
In statement, MNC said while the Supreme Court had backed
Rukmana's appeal, it had not formally announced the details of
"We are confident that this case will not have any impact on
our ownership of MNC TV and operations will continue to run
normally," Tanoesoedibjo said in a statement.
"This case has nothing to do with MNC. The case is directly
between Berkah, the company we acquired TPI from, and Tutut. We
acquired the TV station from Berkah Karya Bersama in 2006. MNC
has and had no ownership or economic interests in Berkah."
At Thursday's close, Media Nusantara's shares fell 10.3
percent to 2,600 rupiah ($0.23). Shares of Global Mediacom
dropped 9.4 percent to 1,970 rupiah while MNC Investama slid 4.1
percent to 350 rupiah.
"Given the uncertainty on this case, we see near-term share
price volatility on the stock, which we believe presents an
enhanced buying opportunity. We view MNC as one of the main
beneficiaries of Indonesia's robust ad spend growth, backed by
the rising middle class and the country's solid macroeconomics,"
Citi Research said in a note on Friday, adding it expected more
court battles over the issue.
($1 = 11,490 rupiah)
(Additional reporting by Fathiya Dahrul; Editing by Jonathan