The sudden upsurge came on the heels of PLDT and TV5’s Chairman’s pronouncement that the much-talked-about deal with ABS-CBN is already in its closing stage.
ABS-CBN Corp is finding a renewed energy in the stock market, as investors and stockholders anticipate to bounce back ahead of the much-talked-about joint venture the media giant is about to enter into with MediaQuest Holdings Inc’s TV5 in the coming weeks.
TV5 Chairman and CEO Manny V. Pangilinan, himself, announced that the deal is almost certain to get sealed sooner than most may expect.
“We have been having discussions with them for over a year. But it is fair to characterize it as we’re in the closing stages,” he said in a report.
The news seemingly stirred excitement and optimism among investors and stockholders, as reflected by the massive upsurge made by both ABS-CBN Corp (ABS) and ABS-CBN Holdings (ABSP), in the stock market. Both stocks opened as top gainers among equities registered under the PSEi, with their stock prices hitting PhP10.00 for ABS-CBN Holdings and PhP10.80 for ABS-CBN Corp, apiece. ABSP notably pulled off a 16.3% leap from the previous trading day, while ABS registered a 15.5% improvement before closing at PhP10.10 and PhP10.20, respectively.
ABS-CBN Corporation’s closing price is its highest in nearly three months. It was ABS-CBN Holdings’ first stock price higher than PhP10.00 since May 30 of the current year.
With the said joint venture predicted to give bothTV5 and ABS-CBN a massive boost in their fiscal health, favorable outcomes only expected to come, howeer, complications may challenge this exciting new partnership. Earlier, the Philippine Competition Commission (PCC) demanded both ABS-CBN and TV5 with an assurance that the venture won’t result to unfair local competition.
According to reports, TV5 is looking for a 65% stake in the partnership, with the remainder to stay with ABS-CBN.
