Preparations for running for the highest office in the land require much time, finances, manpower and network reach, which is why this early Prime Media is raising P531 million through private placement for nationwide broadcast expansion.
Only someone as determined as current Speaker Martin Romualdez can get into such long-term preparation, while he still is the fourth top official in the succession line of government leadership.
Through his Prime Media, which is aiming to become a media company (although he already owns the print group of Journal, Manila Standard and mass media firm, Philippine Collective Media Corp. He is the national president of Lakas-Christian Muslim Democrats political party.
Publicly-listed Prime Media Holdings has clinched a deal with Nation Broadcasting Corp. of bilyonaryo Manny V. Pangilinan. It would take over NBC’s Radyo5 True FM (DWFM 92.3) currently operated by Pangilinan’s TV5.
Bilyonaryo said NBC’s franchise includes television, Channel 41 (OneSports), but this was not included in the deal with Prime Media which only wanted its radio assets.
The purchase will give Prime Media a presence on FM radio in Metro Manila. Prime Media currently operates DWPM 630 (formerly DZMM of ABS-CBN Broadcasting) on AM radio.
PCMC owns a nationwide network of radio stations under FM Radio Philippines outside Metro Manila. It also operates a TV channel, Prime TV, on BEAM frequency.
DWFM was originally launched by the Yabut family in 1973 as MRS 92.3 (Most Requested Song) and it soon rose as the top rated FM station for more than two decades.
Panglinan’s Mediaquest Holdings took control of DWFM from the Yabuts and their then partner, ultra bilyonaryo Manny Villar, in 1998 and reformatted it to Joey @ Rhythms 92.3.
The FM station later switched from jazz to its current news and talk format in 2010.
Babbler said Prime Media is planning to bring back the MRC format to DWFM.
Prime Media, which aims to become a media company, is raising P531 million to fund its expansion into broadcasting, a venture it began three years ago, Bilyonaryo said.
The funds will be raised through the sale of 180 million common shares via private placement at P2.95 per share, Prime Media said in a stock exchange disclosure.
The private placement has been approved by the board, and the shares will be sold to Valiant Consolidated Resources, Prime Media added.
The company’s board also approved the request of Philippine Collective Media to borrow P531 million from the company for acquisitions aimed at expanding its broadcasting franchise nationwide, the company disclosed.
The five-year loan will have 0% interest in the first year and 7% per annum in the subsequent years until fully repaid, Prime Media said.
“The company will benefit from Philippine Collective Media’s expansion, considering firm plans to acquire its parent company, Golden Peregrine,” Prime Media noted.
Prime Media, owned by the Romualdez family, began its transformation into a full-fledged media company in 2021 when its parent company entered into an agreement to acquire Golden Peregrine.
Under the agreement, the acquisition will be executed through a share swap, giving Golden Peregrine shareholders a 70% stake in Prime Media. Philippine Collective Media owns several radio stations nationwide under the FM Radio Philippines network and the AM radio station Radyo 630. It also owns television stations Prime TV and PRTV.
The board of Prime Media Holdings approved two private placements with Valiant Consolidated Resources and Cymac Holdings Corp worth an aggregate of P531 million. The transactions are for PRIM common shares at a price of P2.95/share. PRIM’s board also approved a P531 million loan to its subsidiary, Philippine CollectiveMedia Corporation (PCMC), “to acquire key assets necessary to expand its business operations nationwide”. PRIM is owned by Martin Romualdez.
A column at Merkado Barkada of Manila Bulletin says only a few investors would plunge into PRIM hoping to monetize the company’s crony contacts (Romualdez is President Marcos’ first cousin and the current House Speaker), “but this seemingly ‘obvious’ crony play has taken a long time to unfold. The stock price tanked to the P1.60 range after Marcos was elected President in 2022, and while the long-term chart shows higher highs and higher lows, the price has bounced around quite a bit. Many who purchased in the mid-2022 rush are still underwater at PRIM’s current price, and most of those who purchased in the secondary pump through the first half of this year are underwater as well, some quite significantly. This highlights the danger of playing the crony game.”
Of recent history, the best crony investment story that went pfft is that of Dennis Uy– who ate up so much business during the heydays of Duterte only to find himself selling practically everything he gobbled up and ending in the red.
Word of caution to investors and stock market players: “Don't gamble your money unless you have too much to handle and would like to risk unloading them into such risky political adventures.”
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