Prime Media raising P531M for expansion
Prime Media Holdings Inc. is raising nearly P531 million via capital infusion from two incumbent investors as it lines up plans to beef up broadcast operations.
In a disclosure on Tuesday, the listed company said that its board of directors had approved the private placements of businessman Anthony Te’s Valiant Consolidated Resources Inc. and Cymac Holdings Corp.
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Valiant is set to subscribe 161.36 million shares for P2.95 each for a total of P476 million.
Cymac, meanwhile, will buy 18.64 million shares for P2.95 each for a total of P55 million.
Article continues after this advertisementThese two investors poured into Prime Media a combined P405 million last year after subscribing to 150 million shares.
Article continues after this advertisementTe, who is a director at Philippine Stock Exchange, is also a member of the board for listed mining firms Benguet Corp. and Marcventures Holdings Inc.
Along with this, Prime Media’s board also granted Philippine CollectiveMedia Corp. (PCMC) a total of P531 million in loans.
PCMC operates TV channel PRTV and 25 radio stations across the country under the Favorite Music Radio brand. Founded by House Speaker Martin Romualdez in 2008, it started operations in eastern Visayas before going nationwide after receiving Congress franchise in Dec. 2020.
Prime Media subscribed to 70 percent of PCMC shares in 2021.
PCMC will initially borrow P461 million, which will be payable over five years. The remaining P70 million will be used “as needed for its business operations.”
“PCMC shall use the funds to acquire key assets necessary to expand its business operations nationwide,” the Prime Media Holdings said.
Last year, Prime Media established a joint venture with ABS-CBN Corp., rescuing the retrenched employees when news program TeleRadyo closed due to financial problems.
Prime Media owns 51-percent stake in the joint venture while ABS-CBN holds the remaining 49-percent ownership.
The new company was formed to develop, produce and finance content, programs and shows for distribution to local and international broadcast networks, channels and platforms. INQ
