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PSE allows trading on ABS-CBN tomorrow

By James A. Loyola

Philippine Stock Exchange (PSE) is lifting on Monday, May 18, 2020, the suspension on the trading of the shares of ABS-CBN Corporation and the Philippine Deposit Receipts (PDRs) issued by ABS-CBN Holdings Corporation.

 

ABS-CBN logo

ABS-CBN logo

The PSE said the suspension is being lifted after the firm complied with the bourse’s directive for ABS-CBN to disclose additional information regarding impact of the cease and desist order issued against it by the government last May 6.

ABS-CBN said “The Order will significantly impact the Company’s Media, Networks, and Studio Entertainments (MNSE) operations.”

For the period ended September 30, 2019, the revenues of this segment amounted to ₱23.3 billion, of which, ₱15.9 billion or approximately 68 percent of MSNE revenues, was free- to-air advertising.

On a consolidated basis, free-to-air advertising was approximately 50 percent of the company’s consolidated revenue for the period ended September 30, 2019.

“The actual impact on MNSE operations is difficult to estimate at this point since it will depend, among other things, on the duration of the time its television and radio stations are off-air, and its ability to generate alternative sources of rev¬enues to make up for the shortfall,” ABS-CBN said.

It added that, “Even as the impact of the COVID-19 pandemic on the Philippine and global economy is yet to be fully realized, the Order will put additional financial burden on the Company.”

Last May 13, the House of Representatives Committee of the Whole ap¬proved on second reading House Bill No. 6732 (HB 6732) or “An Act Granting the ABS-CBN Corporation A Franchise to Construct, Install, Operate and Maintain Radio and Television Broadcasting Stations in the Philippines, and For Other Purposes.”

This bill grants ABS-CBN Corporation a franchise valid until October 31, 2020.

In the Senate, two Bills seeking the renewal of ABS-CBN’s franchise, as well as a bill seeking to extended the term of the franchise, have also been introduced before and pending with the Senate Committee on Rules.

Upon approval of HB6732 on third reading, it is expected that the bill will be transmitted to the Senate for its concurrence.


Source: Manila Bulletin (https://business.mb.com.ph/2020/05/16/pse-allows-trading-on-abs-cbn-tomorrow/)

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