MANILA, Philippines - ABS-CBN stockholders approved the cancellation of their pre-emptive rights when the company sells new shares.
ABS-CBN chairman Eugenio Lopez III says ABS-CBN was one of the few major listed companies where stockholders still had pre-emptive rights.
He says it needed to be removed to give the company better flexibility in raising capital wherever there are willing investors.
"The pre-emptive rights provision in the articles of incorporation restricts a listed company's flexibility in raising equity funding. Often the need arises for a company to quickly avail of opportunities offered by favorable market conditions to obtain the highest possible price from the security it is offering," Lopez said.
"This amendment is being proposed if approved does not however mean that minority stockholders are no longer protected. The PSE requires a rights offering in certain circumstances," he added.
Lopez said the company is studying fund-raising options, but denied one of the investors is the Ayala group.
He says talks to share content with Globe Telecom are on-going. -