PSE suspends trading of ABS-CBN shares

The Philippine Stock Exchange (PSE) on Wednesday suspended trading on the shares of ABS-CBN Corp., following the closure order issued by the National Telecommunications Commission (NTC) on the company.

In an advisory, the PSE said the suspension will cover the shares of ABS-CBN Corp. and the Philippine Depositary Receipts of ABS-CBN Holdings Corp.

"In view of the foregoing CDO issued by the NTC that prohibits the Company from continuing its broadcast operations, and pursuant to existing rules, applicable laws and regulations in order to maintain a fair, efficient and orderly trading market, the Exchange will implement a trading suspension on ABS’ shares and the Philippine Deposit Receipts issued by ABS-CBN Holdings Corporation effective at 9 a.m. today, May 6, 2020," the advisory read.

The PSE said the suspension will be lifted a day after the dissemination of the full disclosure to the investing public.

ABS-CBN Corp. is primarily involved in television and radio broadcasting, with subsidiaries involved in cable and direct-to-home television distribution, movie production, audio recording and distribution, post-production, and film distribution, among others.

Shares of the company closed Tuesday, May 5, 2020, at P17.50 apiece.

Meanwhile, ABS-CBN Holdings is mainly engaged in the issuance of PDRs, the performance of obligations, and the acquisition and holding of shares underlying the PDRs in issue from time to time.

The trading suspension comes after the NTC backtracked from earlier pronouncements and instead ordered ABS-CBN Corp. to stop operating its various television and radio stations in the absence of a congressional franchise which lapsed on Monday, May 4, 2020.

ABS-CBN signed off on Tuesday evening following a broadcast of its news program TV Patrol, in compliance with the cease and desist order.

The NTC order was released days after the Office of the Solicitor General warned NTC commissioners that they could face Anti-Graft and Corrupt Practices Act charges should they issue ABS-CBN Corp. and its affiliate ABS Convergence Inc. a provisional authority (PA) to operate after its franchise lapses on May 4, 2020.

Prior to the warning, the NTC said it will heed orders of both House of Congress to grant ABS-CBN a PA to allow the company to continue operating while its franchise is being deliberated.

Earlier, the House of Representatives Committee on Legislative Franchises — through a letter from House Speaker Alan Peter Cayetano and panel chair Franz Alvarez dated February 26, 2020 — formally requested the NTC to grant ABS-CBN a PA to be able to operate beyond May 4.  — RSJ, GMA News