Radio broadcasting group Manila Broadcasting Co. (MBC) is diversifying into the hospitality and leisure estate business by taking a controlling interest in affiliate Elizalde Hotels and Resorts Inc. (EHRI).
In a disclosure to the Philippine Stock Exchange yesterday, MBC said it had struck a deal to acquire an additional 43.64-percent stake in EHRI for P240 million. The deal brings MBC’s ownership in the hotel-resort operator to 80 percent.
“The acquisition aims to maximize the MBC stockholders’ returns by investing in the high-growth industry of hotel and resort business,” MBC said in the disclosure.
The disclosure added that the acquisition would increase MBC’s income through dividends and capital gains.
The transaction was valued at the par value per share of EHRI, whose operating assets have yet to be disclosed.
MBC bought into EHRI in 2016.
The Philippine Stock Exchange suspended trading on MBC starting 1:30 p.m. yesterday pending compliance with the disclosure requirements set forth in the disclosure rules on substantial acquisitions and reverse takeovers.
In its latest annual report, MBC said the pace of change in the business arena today “can be challenging especially in the digital/social network arena for this will definitely have an impact on our listenership ratings.”
Currently valued by the stock market at about P6.4 billion, MBC is engaged in the radio broadcasting business. Its banner station is dzRH, the only nationwide AM station in the country. Love Radio, YES FM and Easy Rock are the three top-rated FM networks being operated by the company. It generates sales through advertising, which accounts for more than 94 percent of revenue.
Other programming formats are: Aksyon Radyo; Radyo Natin and RHTV. MBC also generates revenues by organizing special events such as: Aliwan Fiesta, Paskong Pinoy, Sea Sports Festival, and Manila Bay Clean-up Run.