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Ayaw matulad sa ABS-CBN! GMA converts over P100M worth of PDRs

GMA Network has converted over P100 million worth of Philippine Depository Receipts (PDRs) over the last three months in a bid to avoid the debace of its fallen rival, ABS-CBN.

GMA said owners of a combined 20.897 million PDRs have exercised their conversion rights to change thir holdings into GMA shares.

GMA PDRs closed at P5 per share or virtually the same as the main stock.

The cancelled shares accounted for three percent of the total outstanding PDRs in the market currently pegged at 696.783 million shares.

In July 2020, a congressional committee rejected ABS-CBN’s franchise renewal for several violations, including the constitutional ban on foreign ownership in media through its PDRs.

In August, GMA announced its plan to buy back PDRs held by foreigners at no more than P4.55 per share or 46 percent lower than its offer price of P8.50 in 2007.

While maintaining the legality of its PDRs, GMA feared that it could be “affected by the findings and recommendations of the Technical Working Group as adopted by the House of Representatives Committee on Legislative Franchises on the application for a new franchise of ABS-CBN Corp.”

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