Who is I&C? Low-key firm set to become ABS-CBN’s No. 2 owner after Lopezes

Insider Spotlight

• I&C Holdings is investing P3.5 billion to become ABS-CBN’s single-biggest stockholder and second-largest after the Lopez family bloc. 
• I&C’s three incorporators are investment bankers behind Fortman Cline Capital Markets, bringing deep experience in mergers, capital raising and corporate deals.
• The P6-billion raise is a major bet by the Lopez family and I&C that fresh capital can put ABS-CBN on a firmer path to recovery.

A low-key investment firm is suddenly in the spotlight, thanks to its big bet one of the country’s biggest names in media.

I&C Holdings Corp. is poised to become ABS-CBN Corp.’s second-biggest shareholder, behind the Lopez family bloc, after putting up P3.5 billion, the largest chunk of the media giant’s P6-billion capital infusion.

Details disclosed on Friday underscore just how dramatically the deal will reshape ownership of ABS-CBN, which is still rebuilding its business after losing its broadcast franchise during the administration of former President Rodrigo Duterte.

ABS-CBN will issue 1.64 billion new shares, increasing the media giant’s capital base to about 2.54 billion shares.

As a result, I&C would own roughly 38 percent of those shares, while the combined Lopez interests would hold about 47 percent, with the remainder its public shareholders. 

So, who is I&C?

The Filipino investment firm was established in February this year by a group of investment bankers with Fortman Cline Capital Markets.

Corporate records identify its incorporators as Daniel D. Ibasco, Gary Emerson P. Cheng and Clarisse Darlene Rose Tan. 

The name appears to be a play of words on the Fortman Cline founders: Ibasco and Cheng, whose background information is detailed below alongside Tan. 

• Ibasco is president and co-founder of Fortman Cline. He previously held senior investment banking roles at Bear Stearns and worked at Hambrecht & Quist and Bank of Boston.
• Cheng is co-founder and managing director of Fortman Cline. He previously spent nearly a decade at J.P. Morgan and later served as president and CEO of Amalgamated Investment Bancorporation.
• Tan is managing director for Philippine investment banking at Fortman Cline. She has more than 17 years of experience and has worked on over $6 billion in transactions since joining the firm in 2008.

What the filings show 

I&C has P2.5 billion in authorized capital stock, consisting of 2.5 billion common voting shares with a par value of P1 each, corporate records show. It holds office in the Liberty Center in Makati City. 

Based on its information statement, Ibasco is president of I&C, Cheng is treasurer and Tan is the firm’s corporate secretary. 

Are there other names behind the scenes at I&C? 

It’s possible but that would be pure speculation and not what corporate records reveal. 

Lopez ownership takes a new shape

Lopez Inc. currently owns 55.82 percent of ABS-CBN. Its direct stake would fall to roughly 23 percent after the issuance, even after investing another P300 million.

Crème Investment Corp., Mantes Corp. and Presta Holdings Co. Inc., representing three Lopez family branches, are separately investing a combined P2.2 billion, which would give them roughly 24 percent of the enlarged company.

Together, Lopez Inc. and the three investing family vehicles would hold about 47 percent, keeping the Lopez interests ahead of I&C’s roughly 38 percent even though no single Lopez vehicle would remain ABS-CBN’s biggest shareholder.

Croslo Holdings Corp., representing the Oscar Lopez branch, is not among the three vehicles making a direct investment. Its interests in ABS-CBN via Lopez Inc. would be significantly diluted after the issuance. 

Fresh capital comes with heavy dilution

For existing investors, the P6-billion lifeline comes with a major trade-off.

Public shareholders will also be heavily diluted with the public float falling to just under 15 percent from around 41.6 percent. 

In return, ABS-CBN gets P6 billion of fresh equity without adding debt. 

This infusion amounts to a major bet by both the Lopez family and newcomer I&C on ABS-CBN’s recovery, giving the media company fresh capital to rebuild its business after years of financial challenges.