Broadcasting firm Philippine Collective Media Corporation (PCMC) has formalized its plans for a back door listing at the Philippine Stock Exchange through Prime Media Holdings Inc. (PMHI).
In a disclosure to the Philippine Stock Exchange, Prime Media said it has signed a Memorandum of Agreement (MOU) with PCMC under which PCMC shareholders will subscribe 1.68 billlion 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 P2 billion which will be the source for the shares that will be issued to PCMC shareholders.
After the transaction, PCMC shareholders will gain control and majority ownership of approximately 70 percent of the outstanding capital stock of the PMHI and PCMC will become its wholly owned subsidiary. This includes ownership of all of PCMC’s assets, businesses, and congressional radio and television broadcast franchise.
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, enabling the company to engage in business of news and entertainment content production as well as airtime sales nationwide.
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.
Beyond the existing media and broadcast businesses of PCMC, PMHI said it can also leverage on the existing franchise and network of PCMC for use by existing content providers with no broadcast franchise or rights.