Shares of Lopez-led ABS-CBN Corp. slumped Thursday, weighed down by lingering uncertainty over its franchise which is set to expire in March next year.
ABS-CBN shares touched their 10-year low after The Philippine Star reported that the Lower House opted to steer clear of the renewal of the broadcasting giant’s legislative franchise.
Shares of ABS-CBN fell by as much as 4.9% to P17.60. The stock is now trading at P17.64 each share, lower than Tuesday’s close of P18.46 apiece.
A bill that seeks to renew ABS-CBN’s right to operate TV and radio broadcasting stations in the Philippines through microwave, satellite or whatever means, including the use of new technologies in television and radio systems, remains pending in Congress.
“The Committee on Legislative Franchises, where House Bill 4349 bill had been pending since November 2016, did not submit a report before the outgoing 17th Congress adjourned its third and last regular session,” The Philippine Star reported.
Citing unnamed sources, The Phillipine Star said the committee on legislative franchises would not take any action on the bill as long as President Duterte has complaints against the Lopez-led media giant.