Radio broadcasting group Manila Broadcasting Co. (MBC) has sealed a deal to hike its interest in affiliate firm Elizalde Hotels and Resorts Inc. (EHRI) to 80 percent as part of its plan to enter the hospitality space.
In a disclosure to the Philippine Stock Exchange on Friday, MBC said it had executed a agreement to acquire an additional 16 percent stake in EHRI equivalent to 160,000 common shares priced at P1,000 each.
The price, which summed up to P160 million for the 16-percent additional bloc, was determined based on the par value per share of EHRI.
“The acquisition aims to maximize MBC stockholders’ returns by investing in the high growth industry of hotel and resort business,” the disclosure stated.
With this transaction, a total of 800,000 shares, or 80 percent of the total issued shares of EHRI are now owned by MBC.
EHRI, which was incorporated in 2015, was established primarily to acquire, construct, manage, own, lease, maintain, operate and/or engage in the business of hotels, resorts, private clubs, restaurants, cocktail bars and other allied business.
EHRI has a wholly-owned subsidiary, Feliz Hotel Boracay Inc. (FHBI), which was also incorporated in 2015. FHBI is engaged in the business of hotels, resorts, private clubs, restaurants, cocktail bars and other allied businesses.
Both EHRI and FHBI are still in their preoperating stage and thus, have not started their commercial operations as of end-September 2018, based on MBC’s latest quarterly report.
EHRI and FHBI incurred net losses of P1.79 million and P5.65 million respectively in 2017.