THE Lopez group will continue to determine ABS-CBN Corp.’s strategic direction following shareholder approval of a P6-billion equity infusion that will bring in a new major investor, the company said.
“Lopez, Inc. together with its stockholders, Crème, Mantes and Presta, and together with ABS-CBN will continue to determine ABS-CBN’s strategic direction. The new major investor will be consulted and their rights will be respected,” ABS-CBN Chairman Mark L. Lopez said during the company’s special stockholders’ meeting on Wednesday.
ABS-CBN said its shareholders approved the capital changes needed for the proposed P6-billion investment and the issuance of additional shares to participating investors.
The investors include Crème Investment Corp., Mantes Corp., Presta Holding Co., Inc., Lopez, Inc., and new investor I&C Holdings Corp., the company said.
Stockholders representing 82.97% of ABS-CBN’s outstanding capital stock also approved an increase in the company’s authorized capital stock to P4.50 billion, according to a separate regulatory filing.
The company said shareholders likewise approved amendments to its articles of incorporation to increase the number of shares it may issue and expand the size of its board, subject to approval by the Securities and Exchange Commission.
ABS-CBN said the enlarged board is intended to accommodate directors nominated by the new investor.
“As part of the agenda of this Special Stockholders’ Meeting, the Company is proposing an increase in the number of Board seats to accommodate Directors nominated by the new investor. Aside from this Board representation, the Company does not currently foresee any changes to its management team,” Mr. Lopez said.
ABS-CBN President and Chief Executive Officer Carlo L. Katigbak said the additional capital is intended to support the company’s balance sheet, working capital requirements, and turnaround initiatives.
“The additional capital is expected to strengthen the Company’s balance sheet, support working capital requirements, and help fund the Company’s turnaround and initiatives. We believe these measures will enhance the Company’s long-term prospects and create value for all shareholders,” Mr. Katigbak said.
In September, ABS-CBN said I&C Holdings had agreed to subscribe to P3.5 billion worth of shares, while Crème Investment, Mantes, and Presta agreed to subscribe to an aggregate P2.2 billion. Lopez, Inc. agreed to subscribe to P300 million.
The company said the proposed investments remain subject to applicable corporate and regulatory requirements.
At the local bourse on Wednesday, ABS-CBN shares fell by two centavos, or 0.76%, to close at P2.60 apiece. — Ashley Erika O. Jose