GMA Network Inc. said it will buy the Philippine Deposit Receipts (PDR) issued by GMA Holdings Inc. to protect investments held by foreign investors.
In a filing at the Philippine Stock Exchange, GMA Network said its board of directors has approved the acquisition of PDRs issued by GMA Holdings at the closing price of P4.55 per share, up to October 31, 2020.
After the purchase of the PDRs, GMA Network will convert these into common shares.
The company said the issuance of PDRs might be affected by the findings and recommendations of the technical working group as adopted by the House of Representatives Committee on Legislative Franchises on the application for a new franchise of ABS-CBN Corp.
Last July 10, the lawmakers denied GMA Network rival ABS-CBN’s application to renew its 25-year franchise. Among the issues raised was the sale of PDRs.