I&C Holdings takes 27% stake in ABS-CBN after P3.5 billion infusion

MANILA, Philippines — The Lopez family's grip on media giant ABS-CBN Corp. has loosened following the entry of a new investor that infused P3.5 billion into the company in exchange for a 27-percent share. In a disclosure to the Philippine Stock Exchange, ABS-CBN confirmed the rearrangement of its ownership structure after new and long-time investors brought in fresh capital. The company said private investor I&C Holdings Corp. secured a 27.06-percent interest after it injected P3.5 billion into ABS-CBN, making it the media firm's second biggest shareholder. I&C Holdings is a fully Filipino-owned investment holding company whose founders, Daniel Ibasco and Gary Emerson Cheng, established Hong Kong-based Fortman Cline Capital Markets, a prominent boutique investment banking and corporate finance advisory firm specializing in cross-border mergers and acquisitions, capital restructuring and joint ventures across Southeast Asia. In turn, the Lopezes' hold in ABS-CBN fell to 63.96 percent, from 83.25 percent, keeping majority control of the company, but to a lesser degree. Lopez Inc.'s ownership declined to 44.35 percent, from 78.4 percent, while ABS-CBN Holdings Corp. dipped to 2.59 percent, from 4.83 percent. Creme Investment Corp., for its part, climbed to 5.94 percent, while Mantes Corp. and Presta Holdings Co. Inc. picked up 5.93 percent and 5.15 percent, respectively. Creme, Mantes and Presta represent the three branches of business of the Lopez clan. Recently, they invested P2.2 billion into ABS-CBN as part of a larger P6-billion placement. The remaining P300-million investment came from Lopez Inc., as ABS-CBN marches onward in its recovery efforts since being forced out of free TV in 2020. ABS-CBN said it would use the investments to finance capital requirements, rebuild its balance sheet and support its corporate needs. ABS-CBN reported a net loss of P1.83 billion in the first half, twice as much as the P853 million sustained a year ago. In the absence of election spending, ABS-CBN saw its revenue dip by 17 percent to P6.88 billion. Expenses bloated to P8.46 billion due to cost spikes. However, ABS-CBN said revenues would show up better in the second half, with girl group BINI hosting a world tour that would run until November. Shows with popular recall will also make a comeback for ABS-CBN to bank on for additional revenues. These include Gandang Gabi Vice, hosted by Vice Ganda and the third edition of Pinoy Big Brother Collab.