ABS-CBN reveals Leandro Leviste as 2nd largest shareholder

ABS-CBN [ABS 5.10, up 18.1%; 79% avgVol] [link] disclosed that LL Holdings, a subsidiary of Leandro Leviste’s private holdco, Countryside Investments Holdings Corp., acquired 76,500,000 shares of ABS equivalent to a 8.5% stake in the former broadcasting giant. Mr. Leviste, who is the son of Senate President Pro Tempore Loren Legarda, released a statement saying, “I hope there may now be a way for us to be of help, for the benefit of ABS-CBN’s shareholders and employees, and the media industry of the Philippines.” Ms. Legarda was a news anchor with ABS for 12 years, and recently abstained from the vote on ABS’s franchise renewal in 2020 due to what she called a “conflict of interest.” Shares of ABS rose 18% in yesterday’s trading session.

MB bottom-line: I didn’t see any reports claiming that these shares were primary from ABS, so (to the best of my knowledge) this stake doesn’t give ABS shareholders any new capital to work with. Still, investors seemed to like the development and Mr. Leviste’s vague call to action. The truth is that ABS is running out of “outs”, and it’s basically at the point of having to negotiate with lenders to avoid bankruptcy while it sells off assets to meet obligations. Compared to those problems, having a new shareholder with an 8.5% stake doesn’t really sound like much help. Unless, of course, that new shareholder is really just the point on a political wedge that has greater plans for ABS that could have a direct impact on its topline. The topline is the only thing that can save ABS at this point. 

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