THE House of Representatives would again consider granting ABS-CBN Broadcasting Corp. a franchise if the Lopez family will give up their shares in the company in favor of their employees, an administration lawmaker said yesterday.
“Considering their great wealth, the Lopezes can easily opt to convey their common shares in ABS-CBN to its employees, who can then report a change of control and seek a new broadcasting franchise from Congress,” Defensor said in a statement.
Defensor, who is among the staunchest critics of the network, said the Lopezes and the employees of ABS-CBN “should consider engaging the services of investment bankers who might be willing to arrange the share transfer.”
ABS-CBN’s current market value of P12.7 billion implies that only some P6.4-billion worth of common shares would have to be assigned to effect a change of control, according to Defensor.
The House committee on legislative franchises has voted to deny ABS-CBN Corp. of its bid to have its 25-year franchise renewed. The network’s franchise expired on May 4.
Deputy speaker Luis Raymund Villafuerte last week said the Lopezes should sell ABS-CBN to save its employees from job loss. He said he would support a franchise renewal under a new management, citing the case of Mighty Corporation which paid only P25 billion out of its P37 billion tax dues in exchange for selling the company to JTI corporation.
Defensor said the Lopezes remain in good shape even after ABS-CBN failed to obtain a new congressional franchise, noting that if the Lopezes divested from ABS-CBN, they still effectively control at least four other publicly traded corporations with a combined market value of roughly P136 billion as of July 17.
Defensor was referring to First Gen Corp., First Philippine Holdings Corp., Lopez Holdings Corp., and Rockwell Land Corp., all of which are listed in the Philippine Stock Exchange.
“We’re actually talking here of severely depressed stock market prices due to the economic fallout from the pandemic. A year ago, the four listed firms, without counting ABS-CBN, were worth over P800 billion,” Defensor said.
“Let’s say the Lopezes beneficially owned just a little over 50 percent of the common shares of the four listed firms since they are in control, they still have leftover assets valued at more than P400 billion a year ago and currently worth P68 billion,” Defensor said.
“We also understand they still have a residual four percent equity stake in Manila Electric Co. that is easily worth another P11.5 billion at market prices,” he said.
Defensor also mentioned the Lopez family’s privately held interests in cable TV and Internet services as well as film making for theatrical exhibition, among others.
Villafuerte last week urged government to temporarily use ABS-CBN’s former TV and radio frequencies to provide alternative distance learning modes for students for the next school year.
He proposed an “exceptional partnership” between Malacañang and ABS-CBN Corp. that would enable the government to harness the broadcast network’s nationwide facilities–for a reasonable fee–for the “blended” education system due for rollout this coming school year to deal with the learning crisis spawned by the coronavirus disease 2019 (COVID-19) pandemic.
Villafuerte clarified there is no intention at all in his House Resolution No. 1044 for the state to sequester the network’s TV and radio facilities for the planned distance learning modes.
Chief Presidential Legal Counsel Salvador Panelo said, while the government is ready to assist them, ABS-CBN employees should first look to their employers about separation pay and retirement packages.
Panelo, in his “Counterpoint” TV, also said not all ABS-CBN employees have lost their jobs, or would lose their job, as some of them are still working as the agency continues to air under different platforms. He said production of some programs are ongoing.
ABS-CBN last week announced it would start the process of retrenchment of employees soon. The company reportedly has some 11,000 employees.
Panelo said ABS CBN should focus on the legal issue involving its franchise instead of focusing on the emotional aspect by using the entertainment aspect and showbiz personalities affected by the network’s closure, and the viewers who are clamoring for TV shows. He added that commentaries of some anchors are not helping, especially those who are allegedly exhibiting anti-administration bias in their reporting.
He also reiterated that the issue of the franchise is a legal one and had nothing to do with press freedom.
“Iyung mga anchors ng ABS-CBN, marami sa inyo, sa halip na makatulong kayo ay talagang mayayamot kasi iyung mga pahayag ninyo ay palaging taliwas sa katotohanan (Many of the anchors of ABS-CBN, instead of helping are annoying because their pronouncements are always contrary to the truth),” he said. — With Jocelyn Montemayor
