PT Media Nusantara Citra, Indonesia’s largest media company by market value, plunged the most in almost four years after Saban Capital sold $85 million worth of shares.
Media Nusantara slumped 9.7 percent to 3,250 rupiah at the close in Jakarta, the steepest retreat since June 18, 2009. The drop was the third-biggest decliner on the MSCI Emerging Markets Index, which fell 1.9 percent as of 6:55 p.m. in Hong Kong. Trading volume for the stock was about five times its three-month daily average, according to data compiled by Bloomberg.
The Los Angeles-based private equity firm sold the shares at 3,350 rupiah each, or at 6.9 percent discount to yesterday’s closing price of 3,600 rupiah, two people familiar with the transaction said. They asked not to be identified as the information is private.
“Alarm bells always ring whenever you got a sizable placement by a key investor,” Harry Su, head of research at Bahana Securities, said by phone in Jakarta.
The Jakarta Composite Index fell 1.7 percent, recording its steepest drop since July 23. Asian stocks sank, with the regional benchmark index headed for the biggest decline since September 2011, as Japanese shares plunged after preliminary China manufacturing data unexpectedly signaled a contraction and the yen strengthened.
“The condition of the market was not helpful, the whole market has been in the red since this morning,” Su said. “That exacerbated the drop” in Media Nusantara.
Saban Capital is the private-equity firm of Univision Communications Inc. Chairman Haim Saban.