ABS-CBN to raise P4B in new funds from PDR, equity placement


Capital International Private Equity Fund VI, L.P. (Cipef) and affiliated funds completed its subscription amounting to P2.5-billion worth of new Philippine deposit receipts (PDRs) to be issued by ABS-CBN Holdings Corp., which will in turn subscribe to the same number of newly issued common shares of the broadcasting firm.

“We are glad to have earned the support of our controlling shareholder and one of the world’s largest investment management and private equity firms in our pursuit to deliver enhanced value to all of ABS-CBN’s stakeholders,” said Eugenio Lopez 3rd, chairman of ABS-CBN.

In a disclosure to the Philippine Stock Exchange on Wednesday, ABS-CBN said that Lopez Inc. also agreed to subscribe to P1.5-billion worth of new common shares of ABS-CBN. The transactions allow ABS-CBN to raise P4 billion.

The new PDRs to be issued to Cipef have been priced at P43.225 per PDR. The new shares to be issued to Lopez Inc. have also been priced at P43.225 per share.

The price represents 2.1-percent discount to the 45-day volume-weighted average price for ABS-CBN PDRs and 3.2-percent premium to the 45-day volume-weighted average price for ABS-CBN common shares as of May 14, 2013.

The PDR subscription and the share subscriptions are expected to be completed within 2013.

The company said that at the completion of the share subscriptions and the PDR subscription, Lopez Inc. will hold 56 percent of the outstanding common shares and will retain voting control of 79 percent of all outstanding shares.

The funds raised will be used to further expand the distribution of ABS-CBN content to the widest array of platforms available, including Digital Terrestrial Television. ING Bank N.V. acted as financial advisor to ABS-CBN for the transaction.


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