Lopez majority to invest P2.2B in ABS-CBN

MANILA, Philippines — The Lopez family majority is investing P2.2 billion of its own money in ABS-CBN Corp. to help the media company meet obligations to long-serving employees and support its recovery plans.

The three branches of the Lopez family majority— through Crème Investment Corp., Mantes Corp. and Presta Holdings Company Inc.—said on Wednesday that the funds would come from their personal resources.

READ: Ramon Ang buys into Lopez empire amid family rift

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“ABS-CBN has been part of this family for generations,” Eugenio “Gabby” Lopez III said. “The mission my father set out to pursue remains the heartbeat of this family—to be in the service of the Filipino. We are putting our own money behind this conviction,” he added.

The fresh investment comes as ABS-CBN continues to operate in the red. The media giant booked a net loss of P813.2 million in the first quarter, widening from P500 million in the same period last year.

The family said details of the investment would still have to be finalized with ABS-CBN.

The move comes as tycoon Ramon Ang enters Lopez Inc., a development that could ease concerns over the family’s internal dispute and allow investors to refocus on the fundamentals of its listed companies, according to COL Financial.

COL chief equity strategist April Lynn Tan said Ang’s entry was likely to be viewed favorably by the market after months of uncertainty surrounding the Lopez family.

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READ: ABS-CBN seen surviving amid Lopez family rift

“The entry of [Ang] will be viewed favorably. First of all, it should help alleviate concerns regarding the family feud that has been going on,” Tan said.

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She said greater clarity could allow management to focus on running the businesses, while investors could pay more attention to their underlying performance instead of the family dispute.

Tan also pointed to the valuation implied by earlier reports, which had placed the acquisition price at P45 billion for a 71-percent stake in Lopez Inc.

That would value the entire company at about P63 billion.

She said the valuation supported the view that Lopez Inc.’s underlying subsidiaries were “really cheap.”

Still, Tan cautioned investors against immediately expecting a tender offer for the Lopez family’s listed companies.

She said Ang is acquiring only a 25-percent stake. Based on the tender offer threshold she cited, he would have to acquire at least 35 percent within a 12-month period to trigger the rule for the listed companies. INQ