Lopez family still fine sans broadcast franchise for ABS-CBN –Defensor

The Lopez family will still be in good shape even as it failed to obtain a legislative franchise for the operation of ABS-CBN due to its control of several other corporations, Anakalusugan party-list Representative Mike Defensor said Sunday.

"Assuming 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 said in a statement.

The lawmaker was referring to First Gen Corp., First Philippine Holdings Corp., Lopez Holdings Corp., and Rockwell Land Corp. --- all of which are listed on the Philippine Stock Exchange.

Defensor said that even without counting ABS-CBN, these firms were still worth over P800 billion a year ago.

Even if the Lopezes owned just over 50% of the common shares of the four listed firms, "they still have leftover assets valued at more than P400 billion a year ago and currently worth P68 billion," he 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 added.

At the same time, Defensor said the Lopez family also has privately-held interests in cable TV, Internet services, filmmaking for theatrical exhibitions, among others.

“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,” he said, adding that the family and ABS-CBN employees can consider engaging the services of investment bankers in arranging the share transfer.

Defensor had proposed that the Lopezes divest from ABS-CBN in favor of their employees, who could then apply for a new franchise and operate the network themselves.

Last Friday, Deputy Speaker Luis Raymund Villafuerte said in an ANC interview that the Lopez family should consider selling ABS-CBN Corp. to new owners to save its employees from job loss.

"My suggestion to the Lopez family, they just sell the corporation. If they really love the 11,000 employees or more and they really want to serve the Filipino people, ibenta na lang yung kumpanya," he said.

"Ako, I will support the renewal under new management," he added.

A total of 70 members of the House franchise committee voted to adopt the resolution of the technical working group it created recommending the denial of ABS-CBN's franchise application.

ABS-CBN went off the air on May 5 after the National Telecommunications Commission issued a cease and desist against the network after its previous franchise expired the day before. — DVM, GMA News