June 05, 2013

ABS-CBN raises P2.5B for digital TV initiative

ABS-CBN Corp., the listed television broadcast arm of the Lopez Group, raised an initial P2.5 B out of a multi-component equity deal that was seen to generate P4 B to finance investments in digital TV. The amount was raised after ABS-CBN Holdings Corp. issued Philippine Deposit Receipts (PDRs) to new investor Capital International Private Equity Fund VI, L.P.

ABS-CBN Holdings then subscribed to new common shares issued by ABS-CBN. PDRs, which allow foreigners to invest in certain restricted businesses like media companies, grant holders rights to the underlying share. ABSCBN is also set to separately issue P1.5 B worth of new shares to unlisted Lopez Inc., allowing it to complete the P4-B transaction. - WealthSec