ABS-CBN shareholders OK P6 billion placement

MANILA, Philippines — Media giant ABS-CBN Corp. has received a P6-billion placement from the Lopez family and its new investor, increasing the company’s shares and adding seats to the boardroom.

At a special stockholders’ meeting, ABS-CBN received approval from shareholders to accept the P6-billion infusion from new and long-time investors.

Shareholders also approved the increase in the number of shares that ABS-CBN may issue and raising its board seats from seven to nine.

With the infusion of fresh investments, ABS-CBN is increasing its authorized capital stock to P4.5 billion, split into 4.2 billion common shares at P1 a piece and 1.3 billion preferred shares at P0.20 each.

A boardroom shake-up also looms with the board’s expansion to nine seats. ABS-CBN is adding two directors to its board, accommodating representatives from the new investor.

The proposals were approved by shareholders owning 83 percent of ABS-CBN’s voting shares, with the amendments up for review by the Securities and Exchange Commission.

Private firm and new investor I&C Holdings Corp. injected P3.5 billion into ABS-CBN, betting that the company could still recover from financial decline after losing the right to air on free TV.

The three branches of the Lopez clan, namely, Creme Investment Corp., Mantes Corp. and Presta Holding Co. Inc., also invested P2.2 billion, while Lopez Inc. placed P300 million.

As announced, the investment will be used to build up ABS-CBN’s resources and widen revenue sources. The company plans to produce fresh content for its local and foreign partners, organize more live events and release new films and music.

Still, ABS-CBN is far from returning to profit, especially as many advertisers are reducing their placements to cope with cost pressures. ABS-CBN’s net loss has doubled to P1.83 billion as of June.

ABS-CBN sustained a 17-percent decline in revenue to P6.88 billion, worsened by a five-percent jump in expenses to P8.46 billion.

Recently, ABS-CBN announced another round of layoffs, covering about 200 of its workers, as part of efforts to cut costs.