MANILA Broadcasting Company (MBC) is increasing its stake in affiliate Elizalde Hotels and Resorts, Inc. through a P240-million share purchase agreement.

In a disclosure to the stock exchange on Friday, MBC said it will be acquiring an additional 43.64% of shares in EHRI, bringing its total stake in the company to 80%. The deal comprises the purchase of 240,000 shares priced at P1,000 apiece.

“The acquisition aims to maximize MBC stockholders’ returns by investing in the high growth of hotel and resort business,” the listed company, chaired by Fred J. Elizalde, said.

MBC initially diversified into the hotel and resort business in 2016, when the broadcasting company decided to invest in EHRI.

The new transaction will be subjected to standard closing conditions, such as the delivery of original stock certificates and the execution of the necessary transfer documents.

Trading of MBC shares were suspended at 1:30 p.m. on Friday following MBC’s disclosure, as the Philippine Stock Exchange classified the transaction as “substantial acquisitions and reverse takeovers of the disclosure rules.”

The PSE said it will make further announcements on the lifting of the trading suspension. Shares in MBC last closed at P15.80 each on December 28.

Incorporated in 1947, MBC has a congressional franchise spanning 25 years allowing it to operate radio and TV shows in the country, starting 1994. Under its leadership are DZRH, Aksyon Radyo, Love Radio, Yes-FM, Easy Rock, Radyo Natin, and RHTV. — Arra B. Francia

RELATED ARTICLESMORE FROM AUTHOR