I&C set to acquire 27% stake in ABS-CBN

PRIVATE investment holding company I&C Holdings Corp. is set to acquire a 27.06% stake in listed media company ABS-CBN Corp. through a P3.5-billion investment, making it the company’s second-largest shareholder.

In a comprehensive corporate disclosure filed with the Philippine Stock Exchange (PSE) on Tuesday, ABS-CBN said I&C will subscribe to P3.5 billion worth of shares as part of the media company’s P6-billion equity-raising plan.

Following the transaction, Lopez, Inc., the holding company of the Lopez family, will remain ABS-CBN’s largest shareholder, although its stake will be diluted to 44.35% from 78.4%. I&C will hold 27.06%.

Crème Investment Corp., Mantes Corp., and Presta Holdings Company, Inc., which are also holding companies, will own 5.94%, 5.93%, and 5.15% of ABS-CBN, respectively, after the transaction. ABS-CBN Holdings Corp.’s stake will fall to 2.59% from 4.83%, while other shareholders will collectively hold 8.98%.

ABS-CBN said Crème Investment, Mantes, and Presta Holdings will subscribe to a combined P2.2 billion worth of shares, while Lopez, Inc. will subscribe to P300 million.

The transaction will involve the issuance of common shares from an increase in ABS-CBN’s authorized capital stock, which will require approval from the company’s board, shareholders, and the Securities and Exchange Commission (SEC).

ABS-CBN said the transaction will close once the SEC approves the increase in authorized capital stock.

The company said proceeds from the P6-billion equity raise will be used for working capital requirements, settlement of past-due liabilities, reduction of outstanding bank debt, and other general corporate purposes.

ABS-CBN also said there will be changes in the composition of its board of directors to reflect the new shareholding structure.

The proposed increase in authorized capital stock will be submitted to shareholders for approval at a special shareholders’ meeting, according to the disclosure. ABS-CBN also said the transaction falls under an exception to the PSE’s rights-offering requirement.

The company said its public float will be diluted following the transaction, while foreign ownership will remain unchanged and ABS-CBN will stay 100% Filipino-owned.

ABS-CBN shares closed unchanged at P3.65 apiece on Tuesday. — Ashley Erika O. Jose