ABS-CBN franchise up for (new) debate in House of Representatives

Rep. Joey Salceda filed a bill to provide ABS-CBN [ABS 6.45, up 27.5%; 2489% avgVol] [link]  with a new 25-year franchise, citing the need for a “free market of ideas in the reporting of events and regarding what is happening in our country”. Mr. Salceda added, “The SEC and BIR have cleared ABS-CBN of the allegations against them”, and said that the bill would seek to “cure” some of ABS’s tax issues and alleged violations under the terms of its original franchise. ABS has been without a broadcasting franchise since 2022, when the Duterte administration’s pressure caused the House to fail to renew the bedrock broadcaster’s franchise. News of the filing caused ABS shares to initially jump 23% to P5.06/share. Those gains were extended yesterday.

MB bottom-line: It was a big day for ABS’s #2 shareholder, Leandro Leviste, son of Sen. Loren Legarda, who owns approximately 90 million ABS shares. I don’t know how much Leandro paid for those shares, but he likely acquired the bulk of his stake during a period of time where ABS traded between P3.00 and P4.50/share. It’s hard to say yet whether Leandro’s interest here is in the short-term (stock price trade) or long-term, but given his statements in the media about his desire to buy more shares to obtain a seat on ABS’s board of directors, I tend to think that this is as much a play for control as it is a way for Leandro to pump his bags. I may not agree with his methods, but Mr. Leviste has proven himself to be an agile operator on the exchange. Can he leverage his political connections (again) for fun and for profit? ABS has been radioactive for years, but maybe it’s not too hot to handle now. Maybe there are deals to be made.  

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