PSE halts trading of ABS-CBN shares

The Philippine Stock Exchange suspended trading of common shares and depositary receipts of Lopez-led ABS-CBN Corp. as the media giant lost its bid to regain its franchise.

Last Friday, the House Committee on Legislative Franchise rejected ABS-CBN’s application for a fresh 25-year mandate.

In a memorandum to trading participants, the PSE said the trading suspension was “pursuant to existing rules, applicable laws and regulations in order to maintain a fair, efficient and orderly trading market.

Under the PSE Disclosure Rules, the exchange is mandated to ensure that the investing public has access to full, fair, timely and accurate information where such information may reasonably be expected to materially affect the market activity and the price of its securities.

The PSE has required ABS-CBN to submit a full disclosure on the impact of the non-renewal of its legislative franchise on the business, financial condition and operations of the company, as well as its prospects and business plan moving forward, and such other material information for the investing public.

The trading suspension shall be lifted one trading day after dissemination of the full disclosure to the investing public.

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