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ABS-CBN raises P500-M from sale of treasury shares, PDRs

January 26, 2022 - Wednesday 6:01 PM by GDM

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ABS-CBN Corp. said Wednesday it raised P500 million from the sale of securities in a bid to fund its massive digital shift after losing its broadcast license.
In a disclosure to the stock exchange, ABS-CBN said it sold 21,322,561 of its treasury shares and 27,828,645 Philippine Depositary Receipts (PDRs) to interested qualified institutional buyers at the price of P15.23 for each common share.
The price was determined based on a 12% premium over the closing price of the ABS-CBN common share on January 20, 2022.
At the same time, the selling price represented a 19% premium over the 30-day volume weighted average price of the common shares.
ABS-CBN said its parent firm, Lopez Inc., committed to purchase, at the same price, up to P500 million of shares and PDRs not taken up by institutional investors.
“We confirm that the proceeds will be used for digital initiatives, content production and other general corporate purposes,” the network said.
In 2020, ABS-CBN’s free TV and radio services went off air after Congress rejected the network's application for a new franchise.
The company has since diverted its resources to digital investments, which are yet to pay off.