Bleeding ABS-CBN to get P6B in fresh funds

MANILA, Philippines — The Lopez family and a Philippine investment firm will infuse P6 billion in fresh equity into ABS-CBN Corp., boosting capital as the company continues to pare losses.

A chunk of the fresh funds, or P3.5 billion, will come from I&C Holdings Corp., a wholly Philippine-owned private investment holding company focused on long-term corporate turnarounds. Its investment will come in the form of a subscription to ABS-CBN shares.

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Meanwhile, Creme Investment Corp., Mantes Corp. and Presta Holdings Company Inc., representing three branches of the Lopez family, will subscribe to another P2.2 billion in ABS-CBN Corp. shares using their personal funds.

Likewise, Lopez Inc. will subscribe to an additional P300 million worth of shares.

“This substantial investment is a vote of confidence in ABS-CBN,” ABS-CBN Corp. chair Mark Lopez said in a statement on Wednesday. “It tells us there are people who continue to believe in the company and in our mission of being In the Service of the Filipino.”

Moreover, the fresh capital raise comes as ABS-CBN continues to post losses after Congress declined to renew its free-to-air broadcast franchise in 2020.

In addition, ABS-CBN posted a net loss of P813 million in the first quarter, widening from P500 million in the same period a year earlier.

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Over the same period, ABS-CBN’s revenues fell 21 percent year-on-year to P3.33 billion, with the company attributing much of the decline to weaker cable television and broadband revenues.

ABS-CBN further noted that the proposed P6 billion equity raise will strengthen its balance sheet and fund its shift to a more sustainable, content-led media and entertainment business.

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“As the media industry continues to evolve, we believe these assets provide a strong foundation for the company to adapt, build a sustainable content-led business, and create long-term value,” I&C Holdings Corp. said.

ABS-CBN said it has yet to finalize the equity raising, which remains subject to definitive agreements and corporate and regulatory approvals.