Prime Media sells shares to fund investments
PRIME Media Holdings, Inc. is selling 150 million common shares to two companies as it seeks to boost its financial position for investments.
In a disclosure to the stock market, the company said Angel Maple Properties, Inc. is set to acquire 125 million shares while Cymac Holdings Corp. will take 25 million shares from the listed firm’s unissued common shares.
“Angel Maple and Cymac are property investment and holding companies, who are capable of providing financial and business support to the strategic direction of Prime Media in venturing into the media and entertainment industry,” the company said.
The shares will be issued at P2.70 each based on the 30-day volume-weighted average price of P2.6197 as of May 22, plus a 2.97% premium.
The company said it would raise a total of P405 million from the transaction, which will be paid in cash on or before June 30.
Prime Media said proceeds from the infusion will be used for its working capital and future investments “such as, but not limited to, capital contribution to the joint venture with ABS-CBN Corp.”
The company earlier announced a partnership with the Lopez-led media company to develop, produce, and finance content for distribution to local and international broadcast networks, channels and platforms.
Under the agreement, Prime Media will be the majority stakeholder owning 51% while ABS-CBN owns 49% of the outstanding capital stock of the joint venture company.
In an earlier disclosure, Prime Media said that it would have an initial subscription of 20.4 million shares priced at P20.4 million and ABS-CBN shall have a subscription of 19.6 million shares valued at P19.6 million.
Prime Media shares slid by 0.47% or a centavo to P2.12 apiece on Thursday. — Adrian H. Halili
