I&C Holdings Corporation is slated to become the second-largest shareholder of ABS-CBN Corporation after securing a 27.06% stake as part of a ₱6-billion equity infusion.
According to a regulatory filing, the deal will dilute Lopez Inc.’s direct holding in the media firm from 78.4% down to 44.35%. Despite the drop below 50%, related Lopez family investment vehicles will retain supplementary interests in the company.
I&C will supply ₱3.5 billion as the primary investor in the fundraising round. An additional ₱2.2 billion will be collectively sourced from Crème Investment Corporation, Mantes Corporation, and Presta Holdings Company Inc., with Lopez Inc. contributing ₱300 million.
- Crème, supported by former ABS-CBN chairman Eugenio “Gabby” Lopez III and fellow heirs of the late Eugenio “Geny” Lopez Jr., will boost its stake from 0.02% to 5.94%.
- Mantes, linked to current ABS-CBN Chairman Mark Lopez, will take a 5.93% share.
- Presta will acquire a 5.15% stake in the media company.
The capital injection aims to bolster ABS-CBN’s ongoing financial recovery following the loss of its free-to-air broadcast franchise in 2020, which pushed the firm to pivot into a digital and content-focused media enterprise.
ABS-CBN stated that the proceeds will be allocated toward operational costs, debt service, bank loan payoffs, and general corporate requirements.
The subscription agreements were signed on August 12 and endorsed by the board on August 13.
To implement the deal, ABS-CBN will issue new shares via an expansion of its authorized capital stock, pending clearance from shareholders in a special meeting and regulatory approval from the Securities and Exchange Commission (SEC).
The transaction is exempt from the Philippine Stock Exchange’s rights offering requirements.