‘Vote of confidence’: Lopez family, new investor raise P6B for ABS-CBN

Insider Spotlight

• ABS-CBN is raising P6 billion in fresh equity to fund its recovery and strengthen its balance sheet.
• Three Lopez family branches are putting in P2.2 billion of their own money, with Lopez Inc. adding P300 million.
• I&C Holdings is making the biggest commitment at P3.5 billion, backing ABS-CBN’s content-led turnaround.

ABS-CBN Corp. is raising a sizable P6 billion in fresh equity in a deal that will not only fund its turnaround but also reshape the ownership of one of the country’s best-known media groups.

The biggest commitment is coming from outside the Lopez family, with I&C Holdings Corp. investing P3.5 billion, while three Lopez family branches are putting in a combined P2.2 billion of their personal resources and Lopez Inc. another P300 million.

“This substantial investment is a vote of confidence in ABS-CBN,” ABS-CBN 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,” he added. 

The proposed P6-billion investment breaks down as follows:

• I&C Holdings Corp.: P3.5 billion
• Crème Investment Corp., Mantes Corp. and Presta Holdings Co. Inc.: P2.2 billion
• Lopez Inc.: P300 million

Mark Lopez 

ABS-CBN chair 

New investor takes biggest slice

I&C, a 100 percent Filipino-owned private investment holding company focused on long-term corporate turnarounds, will account for nearly 60 percent of the new money being raised.

“ABS-CBN has built valuable brands, intellectual property, content and deep relationships with Filipino audiences in the Philippines and overseas,” I&C said in the same statement. 

“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,” the company added. 

The final ownership impact will depend on the number and price of shares issued under the transaction, details that were not included in the announcement.

Three Lopez branches put up own money

The P2.2-billion family commitment is coming from Crème Investment Corp., Mantes Corp. and Presta Holdings Co. Inc., representing three branches of the Lopez family.

Crème represents the branch of the late Eugenio “Geny” Lopez Jr., now led by Eugenio “Gabby” Lopez III, while Mantes is owned by the heirs of Manuel “Manolo” Lopez and Presta by the heirs of Presentacion Lopez-Psinakis.

Absent from the P2.2-billion personal commitment is Croslo Holdings Corp., the vehicle representing the Oscar Lopez branch that includes Federico “Piki” Lopez. 

Lopez Inc., the family holding company which is unlisted parent firm of ABS-CBN, is separately putting in P300 million.

Bigger than a cash infusion

The transaction comes amid wider changes in the Lopez empire, including Crème’s sale of its 25.7 percent Lopez Inc. stake to Ramon S. Ang. 

“The P6-billion capital raising is intended to strengthen ABS-CBN’s balance sheet while giving the company additional resources to execute its transformation into a more sustainable, content-led media and entertainment business,” the statement showed. 

The investments remain subject to separate definitive agreements and applicable corporate and regulatory requirements.

—Edited by Miguel R. Camus