Gabby Lopez eyes another Lopez company

With an P11-billion war chest, Gabby Lopez is now his own white knight.

After leading the Lopez family majority in pouring in P2.2 billion into ABS-CBN, days after tycoon Ramon Ang bought his branch’s stake in Lopez Inc., Gabby is putting his money where his mouth is.

He is looking to invest in another company under the Lopez Group, one that is also close to his heart, just like the media giant.

Of course, in this high-stakes tectonic shift within the Lopez Group, nothing is final until it’s done.

Just the same, he hinted about this in the statement he jointly issued with RSA after the Lopez Inc. stake sale.

As Gabby himself said, he sold his stake for two reasons.

“The first is my family. This dispute has not been good for any of us, or for the people who work in our companies. This allows us to take a step toward the restoration of family peace.”

“The second is that it allows me to channel our family’s resources into businesses aligned with our personal mission. We will announce more on this in due time.”

Which company?

There are still several companies under the Lopez Group. Some are not necessarily in trouble but would benefit from new investments.

One possibility is that an existing shareholder of that company will unload shares, and Gabby or the Lopez majority that he leads will acquire them.

Against this backdrop, it’s becoming clearer that Gabby’s move to sell his stake in Lopez Inc. was a well-thought-out strategic gambit.

It was not only meant to restore peace among the cousins but also to save ABS-CBN and focus on, in his words, “businesses aligned with our personal mission.”

This clearly means he is not leaving ABS-CBN and would likewise strengthen his presence in another Lopez company – or maybe more companies.

It cannot be business as usual

For ABS-CBN, however, it cannot be business as usual.

New money may have come in but management must make sure that it would be spent wisely, in such a way that it would lead to ABS-CBN’s recovery.

This may be the media giant’s one last chance for a real comeback after Rody Duterte’s administration killed its franchise in Congress.

The massive, unabated spending in the past, including those that seem straight out of Lifestyles of the Rich and Famous, such as endless champagne and open bars during parties, fat bonuses and perhaps many more, will have to end.

New equity

ABS-CBN said it would raise P6 billion in new equity, comprising the P2.2 billion from the Lopez majority: Crème, Mantes and Presta.

I&C Holdings Corp., a 100-percent Philippine-owned private investment holding company that invests for long-term company turnarounds, will subscribe to P3.5 billion worth of ABS-CBN shares.

Lopez Inc., meanwhile, will subscribe to an additional P300 million worth of ABS-CBN shares.

“This substantial investment is a vote of confidence in ABS-CBN,” said Mark Lopez, chairman of ABS-CBN Corp. “It tells us there are people who continue to believe in the company.”

The P6-billion capital raising is intended to strengthen ABS-CBN’s balance sheet while giving the company additional resources to execute its transformation into a more sustainable, content-led media and entertainment business.

The investments are still subject to applicable corporate and regulatory requirements.

Voting power

While the fresh capital comes with dilution, it is worth noting that Lopez Inc. will still have the majority voting power in ABS-CBN, considering that it has nearly a billion, or 987 million, preferred voting shares.

The preferred shares, its existing shares in the company and the new common shares to be issued would leave Lopez Inc. as the largest voting shareholder of ABS-CBN, with a 44 percent voting stake.

The Lopez majority, Crème Investment, Mantes and Presta would collectively hold 17 percent, while I&C would hold 27 percent.

I&C Holdings

ABS-CBN would benefit from the entry of I&C, which has experience in dealmaking and business turnarounds. I&C is led by investment bankers from Fortman Cline, Daniel “Danny” Ibasco, Gary Cheng and Clarisse Tan.

Fortman Cline is led by its president and co-founder Danny Ibasco, who is as famous for his prowess on the guitar and saxophone as he is for his dealmaking.

Under his leadership, Fortman Cline has become the go-to financial advisor for tycoons.

Among its clients are National Grid Corp. of the Philippines, OneTaipan Holdings Inc., The Medical City, Air21, Mang Inasal, San Miguel Corp. and many more.

Its projects with the San Miguel Group are among the biggest and most significant, including project financing for the construction of San Miguel Corp.’s Metro Manila Skyway Stage 3, the concession contract for the NAIA Expressway, the concession contract for the Bulacan Bulk Water Supply Project and privatization deals for San Miguel Corp. subsidiaries.

Fortman was also the financial advisor to San Miguel when it acquired a 27-percent stake in Meralco way back in 2008.

This SMC-Meralco deal is particularly interesting to me because it means that Danny Ibasco and his group are no strangers to RSA or to buying into the Lopez Group.

This latest Lopez saga continues to unfold for sure.

As one reader told me, “It’s even more exciting than the impeachment.”

Ah yes, I couldn’t help but agree – with or without misleading questions.

*      *      *

Email: [email protected]. Follow her on X @eyesgonzales. Column archives at EyesWideOpen on FB.