Pangilinan-led Nation Broadcasting Corp. (NBC), operator of Radyo5, is in talks to sell its radio assets to Romualdez-founded Philippine CollectiveMedia Corp. (PCMC), which recently obtained a fresh loan to expand operations.
In a statement on Monday, NBC said the parties were “in discussions for the transfer of NBC’s radio assets, subject to applicable regulatory approvals and other commercial terms.”
READ: Prime Media raising P531M for expansion
Radyo5 or 92.3 True FM, said it has, in the meantime, entered into a block time and content licensing agreement with PCMC.
“We will support the momentum that we have built for True FM and develop new audiences on TV, podcasts and digital. We want to establish a cohesive media presence across various platforms, centered on truthful, authentic and trustworthy storytelling,” NBC general manager Raul Dela Cruz said.
While the parties have yet to disclose the acquisition price, PCMC is set to initially borrow P461 million from Prime Media to “acquire key assets necessary to expand its business operations nationwide.”
This is part of the P531-million credit facility granted by the listed company. The balance, P70 million, can be drawn when needed.
PCMC is owned by Golden Peregrine Holdings Inc., which is in the process of being taken over by Prime Media through a share-for-share swap transaction. In the agreement, “shareholders of Golden Peregrine shall transfer their shares in Golden Peregrine in exchange for shares of stock of Prime Media,” the company explained.
The transaction awaits approval from the Securities and Exchange Commission.
PCMC operates TV channel PRTV and 25 radio stations across the country under the Favorite Music Radio brand. It started in eastern Visayas before going nationwide after receiving a congressional franchise in Dec. 2020.
Last year, Prime Media established a joint venture with ABS-CBN Corp., rescuing the latter’s retrenched employees when news program TeleRadyo closed due to financial problems. INQ