By Bilyonaryop staff
ABS-CBN Corp. is making room in its boardroom for the investors behind its recapitalization. Who gets the new seats remains under wraps.
The Lopez-led media company plans to expand its board from seven to nine directors, with the two additional seats meant to “accommodate representatives of additional subscribers to the capital stock,” according to its preliminary information statement.
Those subscribers are bringing in ₱5.7 billion, led by I&C Holdings Corp., which is committing ₱3.5 billion to ABS-CBN.
Lopez Inc., Crème Investment Corp., Mantes Corp. and Presta Holding Company Inc. are subscribing to another ₱2.2 billion worth of shares.
ABS-CBN’s preliminary filing says two directors will be elected to fill the newly created seats but leaves the names of the expected nominees blank.
The omission puts the spotlight on I&C, the biggest single subscriber in the recapitalization and represented by investment bank Fortman Cline. ABS-CBN has disclosed little about the privately held company beyond describing it as a 100% Filipino-owned investment holding company focused on long-term corporate turnarounds.
The filing does not say whether I&C will get either seat, only that the board is being enlarged to accommodate representatives of the new subscribers.
The existing seven-member board was elected only on Aug. 19. It is composed of chairman Martin Lopez, president and CEO Carlo Katigbak, Federico Lopez, Rafael Lopez, independent directors Monico Jacob and Honorio Poblador IV, and Ma. Rosario “Charo” Santos-Concio.
ABS-CBN will ask shareholders to approve the expansion at a special meeting on Sept. 30, along with a threefold increase in its authorized capital stock to ₱4.5 billion from ₱1.5 billion.
The increase would raise authorized common shares to 4.3 billion from 1.3 billion, providing room for the new subscriptions. Authorized preferred shares would remain at one billion.
The recapitalization comes just weeks after Eugenio “Gabby” Lopez III’s branch of the family sold its 25.68% stake in Lopez Inc., the private holding company at the top of the Lopez group, to bilyonaryo Ramon S. Ang.
Days later, investment vehicles of Gabby and his siblings, Crème, Mantes and Presta, joined the ABS-CBN recapitalization, effectively shifting their investment from Lopez Inc. directly into the media company.
Several Lopez directors also have ties to companies putting fresh money into ABS-CBN. Martin is a stockholder of Mantes, Rafael is a stockholder of Crème, while Federico’s family corporation is a stockholder of Lopez Inc.
Lopez Inc. remains ABS-CBN’s dominant shareholder ahead of the recapitalization, holding 502.26 million shares, or 55.82% of outstanding common shares, as of July 31.
