Lopez family to pour P2.2B into ABS-CBN

MANILA, Philippines — The majority owners of the Lopez family are injecting P2.2 billion of their personal funds into ABS-CBN Corp. to help the media company settle obligations to its long-serving employees and support its recovery efforts.

The three family branches — through Crème Investment Corp., Mantes Corp. and Presta Holdings Company Inc. — said on Wednesday the funds would come from their own personal resources, not from corporate coffers.

“ABS-CBN has been part of this family for generations,” said Eugenio “Gabby” Lopez III. “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.”

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The family said the specific terms of the investment still had to be finalized with ABS-CBN.

Ang’s entry seen easing uncertainty

The fresh capital comes as ABS-CBN continues to post losses. The media giant booked a net loss of P813.2 million in the first quarter, wider than the P500-million loss it posted in the same period last year.

The investment follows tycoon Ramon Ang’s move to buy into Lopez Inc., a development analysts say could calm concerns over the family’s internal dispute and let investors refocus on company fundamentals.

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

“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.

She said clearer ownership lines could let management focus on running the businesses, while investors turn their attention to underlying performance rather than the family dispute.

Deal value points to undervalued holdings

Tan cited earlier reports pegging the acquisition price at P45 billion for a 71-percent stake in Lopez Inc. — implying a valuation of roughly P63 billion for the entire company.

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

Tan cautioned investors against expecting an immediate tender offer for the Lopez family’s listed companies. Ang is currently acquiring only a 25-percent stake, she noted, and would need to cross 35 percent within a 12-month period to trigger the mandatory tender offer rule. / Emmanuel John Abris

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