ABS-CBN sets December preferred share offer
MANILA, Philippines - ABS-CBN Corp., the listed media arm of the Lopez Group of Companies, plans to complete a preferred share offering to existing stockholders by December this year.
The issuance will give the broadcast firm additional leeway to raise funds via an equity placement in 2013 to partly pay for a planned expansion into new business lines.
ABS-CBN said in a followup disclosure on Thursday that it expects the Securities and Exchange Commission to approve by November 29 the revisions to its articles of incorporation to reclassify 200 million common shares, with a par value P1 per share, into 1 billion preferred shares, with a par value of P0.20 per share.
The offer period itself will run from December 3 to 14, with the issuance of the shares expected on December 20. The preferred shares will be voting, non-convertible, non-participating, cumulative and redeemable, the disclosure showed.
Once issued, the preferred shares will represent 56.7 percent of the company’s total outstanding shares, the disclosure showed.
The issuance will pave the way for a fund-raising exercise next year with ING Bank acting as financial advisor, a source said previously. ABS-CBN is seeking to enter new business lines as well as financing plans for so-called digital terrestrial television.
Company shares rose 0.15 percent to P32.80 each on Thursday, giving the company a market value of P25 billion.