LISTED Manila Broadcasting Company (MBC) said on Monday it has acquired a 44.44 percent minority stake in its affiliate Elizalde Hotel and Resorts Inc. (EHRI) in a bid to boost the company’s income stream.
MBC told the Philippine Stock Exchange (PSE) that it executed a share purchase agreement with EHRI on Monday to acquire 200,000 common shares at a price of P1,000 per share, which is based on the par value of EHRI shares, for a total purchase price of P200 million.
“The acquisition aims to maximize MBC stockholders’ returns by investing in the high growth industry of the hotel and resort business,” MBC said.
“This acquisition will increase the MBC’s income through dividends and capital gains that will be beneficial to MBC stockholders,” it added.
The company said it will pay 25 percent of the transaction value upon subscription while the remaining 75 percent will be settled within one year.
EHRI and MBC are both owned by broadcasting magnate Fred J. Elizalde.
EHRI is engaged in hotels and resorts development while MBC is a listed radio broadcasting company that operates radio programs including DZRH, Aksyon Radyo, Love Radio, Yes-FM, Easy Rock, Radyo Natin, as well as RHTV.
MBC operates one AM and three FM stations for Metro Manila, as well as 10 Aksyon Radyo, 25 Love Radio, 10 Yes-FM, 7 Easy Rock, 18 DZRH relay stations, and 151 Radyo Natin stations in the provinces.
Aside from MBC and EHRI, the FJE Group of Companies includes Philippine International Corp. (Philcite), Star Parks Corp. (Star City), Elizalde Holdings Corp., and Northern Capiz Agro-Industrial Development Corp. (Norcaic).