Manila Broadcasting Corp. increases stake in affiliate hotel unit

MANILA, Philippines — Manila Broadcasting Co. (MBC), the radio company owned by the Elizalde family, has acquired an additional stake in its affiliate hotel and resort business.

MBC disclosed yesterday that it acquired an additional 43.64 percent shares of Elizalde Hotels and Resorts Inc. (EHRI) after obtaining board approval on Dec. 29.

“The acquisition aims to maximize MBC stockholders’ returns by investing in the high growth industry of the hotel and resort business,” MBC said.

Furthermore, MBC said the acquisition would increase MBC’s income through dividends and capital gains that would be beneficial to MBC stockholders.

“With this transaction 80 percent of issued shares of EHRI is now owned by MBC,” it said.

The purchase, done through a share purchase agreement, involved 240,000 common shares, representing 43.64 percent of the subscribed shares of EHRI for P240 million.

Last year, MBC also bought 200 million common shares of EHRI for P200 million.

MBC was incorporated on Sept. 30, 1947 to engage in the radio broadcasting business. It now has seven programming formats namely, DZRH; Aksyon Radyo; Love Radio; Yes-FM; Easy Rock; Radyo Natin and RHTV. The company operates nationwide with one AM and three FM stations in Metro Manila and 10 Aksyon Radyo, 26 Love Radio, 11 Yes-FM, eight Easy Rock, 18 DZRH relay station and 151 Radyo Natin stations in the provinces.

It generates sales through advertising and has a congressional franchise to operate and own radio and TV stations for a period of 25 years since 1994.

EHRI is a boutique hotel operator that manages a hotel in Boracay Island in Aklan. It listed Feliz Boracay Inc. as its operating unit. It is one of the popular four stars in the island.