PSE lifts trading suspension on Prime Media Holdings

MANILA, Philippines — The Philippine Stock Exchange, operator of the local bourse, has lifted the trading suspension of Prime Media Holdings Inc. (PRIM) after the company submitted the required comprehensive disclosure on backdoor listing.

Last month, the PSE suspended the trading of PRIM shares after its board approved the signing of a memorandum of agreement with the shareholders of Philippine Collective Media Corp. (PCMC).

Under the agreement, PCMC shall subscribe to 1.679 billion common shares of PRIM to be issued from an increase in authorized capital stock of PRIM of an additional P2 billion which will be paid in the form of PCMC shares based on third-party appraisal, subject to confirmation by a third-party fairness opinion and other closing conditions.

The transaction aims to transform PRIM into a viable and operational business entity and address its capital deficiency, negative equity, and non-operation. The transaction will result in the folding-in of PCMC into the company, making it a subsidiary of PRIM.

“With the national franchise of PCMC, PRIM can engage in an active business of mass media and further leverage its franchise and network for use by existing content providers in need of broadcasting rights,” PRIM said in a disclosure yesterday.

On the other hand, the PCMC shareholders will gain control and majority ownership of approximately 70 percent of the outstanding capital stock of PRIM.

PCMC operates PRTV in Tacloban and several radio stations under the brand, FMR (Favorite Music Radio).

The transaction is subject to the approval of PRIM shareholders, approval by Congress for change of controlling interest in PCMC, approval of the increase in capital stock by the Securities and Exchange Commission, issuance of the certificate authorizing registration by the Bureau of Internal Revenue for transfer of PCMC shares to the company and approval by the PSE of the listing of the subscribed shares.

PCMC will apply for congress approval for change of controlling interest on or before the end of August and expects to secure the approval on or before the end of the year.