SEC okays ABS-CBN capital restructuring

MANILA, Philippines - Lopez-led multimedia conglomerate ABS-CBN Corp. has secured the Securities and Exchange Commission’s nod to undertake a capital restructuring program.

The program involves the reclassification of 200 million common shares into one billion voting preferred shares. 

The common shares to be reclassified have a par value of P1 while the voting preferred shares that will replace them will have a par value of P0.20.

The voting preferred shares shall be cumulative, non-participating and non-convertible to common shares.

ABS-CBN said the capital restructuring program is intended to give the company financial flexibility as it embarks on an aggressive expansion that will include new business lines.   

ABS-CBN is reportedly looking to embark on a fund-raising program next year as it vows to maintain its supremacy in TV and radio ratings.

The network is preparing to start broadcasting on digital frequencies and is seen to spend P700 million to replace analog technology.

ABS-CBN may also tap the debt market to fund its expansion.

In the nine months ending September this year, the company posted net earnings of P1.55 billion, down 31 percent from P2.24 billion in the same period in 2011. Excluding the P825 million one-time gain last year, ABS-CBN’s profit rose 10 percent.