Prime Media Holdings Inc. (PRIM) signed a Memorandum of Agreement (MOU) with Philippine Collective Media Corporation (PCMC).
The MOA signifies PCMC Shareholders’ subscription to One Billion Six Hundred Seventy Nine Million Nine Hundred Sixty Six Thousand Four Hundred (1,679,966,400) PMHI common shares to be paid in the form of PCMC shares based on third-party appraisal valuation. The MOA will require PMHI to increase its authorized capital stock by at least Two Billion Pesos (P2,000,000,000.00) which will the be source for the shares that PCMC Shareholders’ will subscribe to.
After the transaction, the PCMC Shareholders will gain control and majority ownership of approximately 70% of the outstanding capital stock of the Company, and PCMC will become a wholly-owned subsidiary of PRIM, together with all the assets, businesses, and congressional radio and/or television broadcast franchise of PCMC.
Currently, PCMC operates (PRTV) in Tacloban and 18 radio stations under the FMR (Favorite Music Radio) network. Broadcasting since 2009, PCMC was recently granted a national franchise.
FMR radio shows are currently hitting the airwaves of Tacloban, Calbayog, Catbalogan, Catarman, Ormoc, Borongan, Davao de Oro, Iligan City, Butuan, Camiguin, Davao de Oro, Zamboanga Sibugay and Dipolog. New stations are set open in Baguio and Camarines Sur.
With the national franchise of PCMC, PRIM can now engage in the business of news and entertainment content production as well as airtime sales for the entire Philippines. Beyond the existing media and broadcast businesses of PCMC, PRIM can also leverage the existing franchise and network of PCMC for use by existing content providers with no broadcast franchise or rights.
FMR can be enjoyed via livestream from its studios in Makati and Fairview. It is set to launch its own free TV channel very soon.
Prime Media Holdings Inc. is trading under PSE ticker symbol “PRIM”. The holding company also intends to venture into real estate development, leisure and hospitality, and gaming to expand and diversify its business.