RADIO station operator Manila Broadcasting Co. (MBC) said it secured a deal with its affiliate Elizalde Hotels and Resorts Inc. to increase its stake in the hotel operator.
The company, which has its own radio stations as its main business, said it purchased 160,000 common shares at Elizalde Hotels for P1,000 apiece or a total price of P160 million.
“The price was determined based on the par value per share of EHRI. The closing of the transaction shall be subject to the completion of all customary closing conditions as stated in the agreement,” the company said. With the acquisition, MBC now owns 80 percent of Elizalde Hotels.
“The acquisition aims to maximize MBC stockholders’ returns by investing in the high growth industry of hotel and resort business,” it said.
“This acquisition will increase the MBC’s income through dividends and capital gains that will be beneficial to MBC stockholders.”
Elizalde Hotels was incorporated on March 18, 2015, 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 necessary. It owns Feliz Hotel Boracay Inc., which is still on their preoperating stage and there have not started their commercial operations. Elizalde Hotels and Feliz Hotel have incurred net losses of P1.79 million and P5.65 million, respectively, in 2017.
MBC was incorporated on September 30, 1947, to engage in the radio broadcasting business. MBC expanded its operations to embrace both broadcasting and organizing special events. The company’s current business model provides advertisers with a combination of benefits—the traditional appeal of MBC’s AM and FM networks plus the exposure generated by special events.