ABS-CBN Corp. will stay under the Lopez family’s leadership even as new investors come in through a P6-billion equity infusion aimed at the media company’s turnaround. Shareholders on Wednesday, September 30, approved a higher authorized capital stock and the issuance of new shares for the investments first announced in August. Stockholders holding 83 percent of the company’s outstanding voting shares voted in favor.
Chair Mark Lopez said Lopez Inc., together with Crème Investment Corp., Mantes Corp., and Presta Holding Company Inc., will continue to set ABS-CBN’s strategic direction. The three holding companies represent different branches of the Lopez family. I&C Holdings Corp., the new major investor, will be consulted and its rights respected, Lopez said. To make room for directors nominated by the new investor, the board will grow to nine seats from seven.
Lopez also addressed recent changes at Lopez Holdings Corp., the listed holding firm. He said they will have no effect on ABS-CBN because Lopez Holdings has no voting rights over the media company’s shares. “The strategic decision is made at the Lopez Inc. and ABS-CBN levels,” he said. Last month, Benjamin Lopez was elected director, president, chief operating officer, and chief finance officer of Lopez Holdings. Federico Lopez stays on as its chair and CEO, and Martin Lopez remains vice chair.
ABS-CBN president and CEO Carlo Katigbak said the larger authorized capital stock lets the company receive the P6 billion. The money is expected to shore up the balance sheet, cover working capital needs, and fund turnaround initiatives. Katigbak said the measures are meant to improve the company’s long-term prospects and create value for all shareholders, including minority investors.
The changes to ABS-CBN’s articles of incorporation, covering the increase in authorized shares and the larger board, still need approval from the Securities and Exchange Commission. The company said the investments will support its effort to build what it calls the “new ABS-CBN,” which distributes content through television, streaming, digital platforms, films, music, live events, and international markets.
