MANILA, Philippines – Lopez-led multimedia giant ABS-CBN Group raised P2.5 billion after Capital International Private Equity Fund VI LP (CIPEF) completed a buy-in transaction sealed a month ago.
ABS-CBN assistant corporate secretary Enrique Quiason informed the Philippine Stock Exchange (PSE) that CIPEF through Mercury Media Holdings Finance I Ltd yesterday subscribed to P2.5 billion worth of ABS-CBN Philippine Deposit Receipts (PDRs).
Last May 15, ABS-CBN announced that CIPEF agreed to subscribe to P2.5 billion worth of new PDRs priced at P43.225 apiece to be issued by ABS-CBN Holdings Corp. which will in turn subscribe to the same number of newly issued common shares of ABS-CBN Corp.
CIPEF VI has a fund size of $3 billion focused on expansion capital and buyout in global emerging markets and is part of the six funds managed by the group across the globe with aggregate commitments of $6.7 billion.
On the other hand, Lopez Inc. would subscribe to P1.5 billion worth of new common shares of ABS-CBN at P43.225 per share, representing a 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.
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.
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ING Bank NV acted as financial advisor to ABS-CBN for the transaction.
Earlier, ABS-CBN chief finance officer Rolando Valdueza said proceeds of the fund raising activities would be used to further expand the distribution of ABS-CBN content to the widest array of platforms available including Digital Terrestrial Television.
ABS-CBN is spending P5 billion for its capital expenditures which is almost the same as last year’s P4.9 billion.
