ABC-5 to raise capital base to P2B

ABC Development Corp., the parent firm of Channel 5 operator, Associated Broadcasting Co. owned by businessman Antonio Cojuangco, is increasing its capitalization to P2 billion from only P750 million, to strengthen the operations of the country’s third largest television network.

ABC-5 is in need of additional capital to improve its technical infrastructure and remain competitive.

The network’s planned capital hike has already secured the approval of the Securities and Exchange Commission. Out of the P1.25-billion capital increase, P500 million has been fully subscribed and paid in cash by Telemedia Business Ventures Inc. (P300 million) and Med Vision Resources Inc. (P200 million).

ABC was acquired by Cojuangco in October 2003. The former chairman of Philippine Long Distance Telephone Co., Cojuangco is also the owner of Dream Satellite Broadcasting and Bank of Commerce, among others.

Cojuangco, who serves as president and chief executive officer of ABC, envisions a network "strong on news and public affairs, provides high quality entertainment and serves as an effective tool with which to shape and mold a country’s ethical values and moral fiber."

ABC’s management team is laying the groundwork for a highly-competitive cutting-edge television station with a modernization plan expected to be completed this year at a cost of over P1 billion. Top priority is optimum coverage and TV signal reception.

To achieve this, ABC will boost its transmission power and establish new sites in strategic parts of the country. Coverage is also being augmented through affiliations and through synergy with its sister company, Dream Broadcasting.

ABC also aims to reach audiences in America via its Mabuhay Channel.

ABC-5 was first granted a congressional franchise in 1960. It operated as a radio and television network from 1960 until 1972 when it was shut down when martial law was declared.

After the fall of the Marcos regime, the television network was revived. It broke ground at its new headquarters in Novaliches, Quezon City, in 1990 under a group of new stockholders led by broadcast veteran Edward Tan. It resumed commercial operations in 1992 and acquired a new franchise to operate in 1994.

ABC’s main station is DWET-5 in Metro Manila. It also operates a radio station, Dream 106 FM, in Metro Manila.