MANILA, Philippines — Listed MRC Allied Inc. is stepping on the gas pedal on its diversification into new businesses, with the company poised to become the biggest stockholder of Rappler Holdings Corp. (RHC).
In a stock exchange filing, MRC Allied said its board approved the company’s purchase of a significant ownership interest in RHC, the principal owner of the internationally recognized digital online platform.
MRC Allied said it would buy out the 31.20 percent ownership interest of Dolphin Fire Group Inc. (DFGI) in RHC to become the company’s largest stockholder.
The purchase will be done through a share swap scheme in which MRC will utilize either its available authorized capital stocks or subscribed capital stock as a consideration for the shares of DFGI.
An auditing firm or financial advisor will be tapped to determine the valuation of the shares of DFGI in RHC.
MRC Allied said the transaction would be closed within 30 days from the date of the third-party valuation report.
“The purchase transaction will allow MRC to expand into the fast-growing local digital online platform industry,” the listed firm said.
RHC is the parent company of online news organization Rappler, which is co-founded by journalist Maria Ressa.
MRC Allied, meanwhile, was incorporated initially to engage in the processing and export of baled natural rubber. It then decided to focus on its core business of real property development.
In 2020, the company changed its primary purpose from real estate to a holding company, with a growing portfolio of wholly owned subsidiaries such as Menlo Renewable Energy Corp., MRC Tampakan Mining Corp., MRC Surigao Mines Inc. and Makrubber Corp.
Recently, MRC expressed plans to expand its business portfolio by expanding into the fast-growing information and communication technology (ICT) sector.
The company early this year announced its subscription to 75 million common shares of Bitstar Prime Holdings Inc. at P1 apiece, enabling it to have controlling ownership of the company.
MRC said the transaction is part of the company’s business plan to become a significant player in the fast-growing ICT Industry in the country.
Bitstar Prime will be utilized by MRC to purchase and house telecommunication and broadband assets upon completion of the transaction.
MRC shares went up by 28.04 percent to P1.37 yesterday.