ABS-CBN to issue preferred shares to finance expansion

MANILA, Philippines - ABS-CBN Holdings Corp., a media arm of the Lopez Group of Companies, is set to raise P200 million through the issuance of one billion preferred shares to existing shareholders to bankroll its foray into business lines as well as financing plans for so-called digital terrestrial television.

In a disclosure to the Philippine Stock Exchange (PSE), ABS-CBN corporate secretary Enrique Quiason said the company would offer one billion preferred shares with a par value of P0.20 per share pro rata to its existing shareholders.

The shares to be offered between Jan. 7 to Jan. 25 next year to stockholders as of Dec. 26 would have a cumulative interest rate at two percent per annum payable on each anniversary date.

Quiason pointed out that the voting preferred shares could not be owned by non-Filipinos.

He added that Lopez Inc. would take up any preferred shares not subscribed during the offering period.

The earnings of ABS-CBN fell 31 percent to P1.56 billion in the first nine months of the year from P2.24 billion in the same period last year. Removing the effects of the one-time P825 million gain from the sale of investments recognized in the first nine months of 2011, net income increased by 10 percent this year.

Revenues from advertising and consumer sales climbed 13 percent to P24 billion with advertising revenues accounting for 60 percent of total consolidated revenues while consumer sales made up the balance of 40 percent.

Meanwhile, ABS-CBN announced the appointment of Ma. Rosario “Charo” Santos-Concio as its new chief executive officer effective Jan. 1 replacing Eugenio “Gabby” Lopez III who would continue to be the Chairman of the Board.

Santos-Concio would continue to hold her position as the company’s president and chief content officer.

As ABS-CBN president, Santos-Concio conceptualized strategies and solutions for the company’s growth, helping it achieve profit margins, record-high advertising revenues, and leadership in nationwide TV ratings.

It was also during Santos-Concio’s term that the network was named as one of the top 15 highest scoring companies and the only publicly listed media organization to garner a score for 90 percent or higher in the Institute of Corporate Directors’ 2008 Corporate Governance Scorecard.

Before being promoted to president in 2008, she served as ABS-CBN’s head for Channel 2 in 2006, executive vice president in 1998, senior vice president of TV production in 1996, vice president of production operations in 1991, and director  for Programs in 1989. She joined ABS-CBN as consultant in 1987.

She graduated cum laude from St. Paul’s College in Manila with a degree in Communications Arts and completed the Advanced Management Program at Harvard Business School in 2007.