MRC Allied moves to acquire a significant stake in Rappler Holdings Corp.
MANILA, Philippines — Listed MRC Allied Inc. of businessman Benjamin Bitanga will venture into the digital media space as it moves to acquire a significant stake in Rappler Holdings Corp., which owns local online news site Rappler.
In a stock exchange filing on Thursday, MRC said its board of directors had approved the acquisition of the entire 31.20-percent ownership interest held by media company Dolphin Fire Group Inc. in Rappler via a share swap deal.
Dolphin Fire is 99.94-percent owned by investment house Menlo Capital Corp., the holding company of the Bitanga family. Menlo, in which tycoon Lucio Tan has a 49.99-percent stake, owns 51 percent of MRC.
The planned acquisition will make MRC, which has interests in property, mining and energy, the largest shareholder of Rappler.
Under their agreement, MRC would “utilize its available authorized capital stocks or subscribed capital stock as a consideration for the shares” of Dolphin Fire, a longtime shareholder of Rappler.
Share swap deal
The purchase price will be disclosed after a third-party valuation of Dolphin Fire’s shares in Rappler is conducted, according to MRC.
Apart from Dolphin Fire, Rappler CEO and executive editor Maria Ressa has a 23.77-percent stake in the media company, while angel investor Benjamin So and Hatchd Group Inc. each hold a 17.86-percent stake, according to Media Ownership Monitor Philippines.
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“The purchase transaction will allow MRC to expand into the fast-growing local digital online platform industry,” it said in its disclosure.
The businessman established MRC in 1994 as a rubber processing company. It later transitioned into a property development firm.
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He is also a major shareholder of Philippine Telegraph & Telephone Corp., which is seeking a comeback in the local stock market following its 20-year trading suspension.
He also formed in 1993 MacroAsia Corp., which holds an airline catering license from the Manila International Airport Authority.
Sought for comment about the acquisition, MRC president and CEO Augusto Cosio Jr. said Rappler’s other services, such as it technology business, convinced them to make the move.