Insider Spotlight
Just days after his Crème Investment Corp. agreed to sell its 25.7 percent stake in Lopez Inc. to the San Miguel Corp. chair and CEO, Crème and two other Lopez family branches committed P2.2 billion of their personal resources to ABS-CBN.
Stock price surge
That vote of confidence sent ABS-CBN shares sharply higher on Thursday, with the stock jumping nearly 17 percent to its highest level in a year.
Shares were trading at P14.50 apiece later in the session, still up almost 10 percent.
“ABS-CBN has been part of this family for generations,” Eugenio “Gabby” Lopez III said on behalf of the family members in a statement.
“The mission our family 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.
Consistent message
The fresh investment also echoes a statement issued by the majority members of the Lopez family last April, when they publicly reaffirmed their commitment to ABS-CBN.
“ABS-CBN is an institution that serves the public and the country. It will survive and grow once more. The majority will make sure of that,” the group said at the time.
Three of four family branches put money in
Crème, representing the branch of the late Eugenio “Geny” Lopez Jr., is investing alongside Mantes Corp., representing the heirs of Manuel “Manolo” Lopez, and Presta Holdings Co. Inc., representing the heirs of Presentacion Lopez-Psinakis.
The one family branch not participating directly in the P2.2-billion personal investment is Croslo Holdings Corp., representing the heirs of Oscar Lopez and the branch that includes Federico “Piki” Lopez.
The commitment also gives more context to Gabby’s earlier explanation for the sale: he said it would free up resources for businesses aligned with his family’s “personal mission.”
A long history with ABS-CBN
The ABS-CBN investment carries an even deeper personal history for Gabby branch.
His father, Geny, was leading the network when it was seized following the declaration of martial law by then-President Ferdinand Marcos Sr. in 1972, and spent five years imprisoned without trial before escaping in 1977.
After returning to the Philippines following the 1986 People Power Revolution, Geny helped rebuild ABS-CBN when the Lopez family regained Channel 2 and part of its broadcast center that June.
P6-billion vote of confidence
The family commitment forms part of a much larger P6-billion equity raise for ABS-CBN, with Lopez Inc. separately subscribing to another P300 million worth of shares.
“This substantial investment is a vote of confidence in ABS-CBN,” said chair Mark Lopez, the son of Manolo. “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'.”
I&C Holdings Corp., a 100 percent Philippine-owned private investment holding company that invests in long-term corporate turnarounds, is providing the biggest portion with a P3.5-billion subscription.
“ABS-CBN has built valuable brands, intellectual property, content and deep relationships with Filipino audiences in the Philippines and overseas,” I&C said. “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.”
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
