Prime Media halted after P405-M private placement sale

Prime Media Holdings [PRIM 2.23 3.7%] [link] was halted for an hour by the PSE after the company disclosed that it sold 150 million common shares by private placement, at a per-share price of P2.70. The deal calls for a full cash payment of P405 million to be made to PRIM by June 30.

The buyers are Angel Maple Properties Inc. (125 million shares) and Cymac Holdings Corporation (25 million shares).

The shares are primary/new, so their issuance will expand PRIM’s outstanding common shares by 21% to ~850 million.

PRIM said that it would use the money for working capital, for future investments (including the ABS-CBN joint venture), and to provide a loan to its subsidiary, Philippine CollectiveMedia Corporation.
 

MB BOTTOM-LINE

While technically Angel Maple and Cymac Holdings are at arms-length, their owner (Anthony Te) is a long-time member of the same political cinematic universe as PRIM and its owner, Martin Romauldez.

This is a fresh capital raise from an allied source, and should not change PRIM’s approach or direction in any appreciable way.

These are predictable votes that PRIM can use to circumvent the spirit of the PSE’s 20% public float rule.

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.