Real estate firm to become Rappler’s biggest shareholder

Listed MRC Allied Inc. of businessman Benjamin Bitanga will venture into the digital media space as it moves to acquire a significant stake in Rappler Holdings Corp., which owns local online news site Rappler.

In a stock exchange filing on Thursday, MRC said its board of directors had approved the purchase of the entire 31.20-percent ownership interest held by media company Dolphin Fire Group Inc. in Rappler via a share swap deal.

Dolphin Fire is 99.94-percent owned by investment house Menlo Capital Corp., the holding company of the Bitanga family. Menlo, in which tycoon Lucio Tan has a 49.99-percent stake, owns 51 percent of MRC.

This will make MRC, which has interests in property, mining and energy, the largest shareholder of Rappler.

Under their agreement, MRC would “utilize its available authorized capital stocks or subscribed capital stock as a consideration for the shares” of Dolphin Fire, a longtime shareholder of Rappler.

The purchase price will be disclosed after a third-party valuation of Dolphin Fire’s shares in Rappler is conducted, according to MRC. Apart from Dolphin Fire, Rappler CEO and executive editor Maria Ressa has a 23.77-percent-stake in the media company, while angel investor Benjamin So and Hatchd Group Inc. each hold a 17.86-percent stake, according to Media Ownership Monitor Philippines.“The purchase transaction will allow MRC to expand into the fast-growing local digital online platform industry,” it said in its disclosure. Inquirer sought to interview Bitanga, but he has yet to respond.The businessman founded MRC in 1994 as a rubber processing company. The company later transitioned into real property development.He is also a major shareholder of Philippine Telegraph & Telephone Corp., which is seeking a comeback in the local stock market following its 20-year trading suspension.He also founded in 1993 MacroAsia Corp., which holds an airline catering license from the Manila International Airport Authority. INQ