Leandro Leviste acquires significant atake in ABS-CBN Corp., becomes second-largest shareholder
31-year-old entrepreneur and founder of SP New Energy Corp. (SPNEC) Leandro Leviste has made a significant investment in ABS-CBN Corp., solidifying his position as the media giant’s second-largest shareholder after the Lopez Group.
Leandro Leviste acquires significant atake in ABS-CBN Corp., becomes second-largest shareholder
Leviste’s entry into ABS-CBN was announced on Thursday, marking a notable development for the company, which currently grapples with approximately P12.6 billion in debt obligations.
While the exact financial details of the transaction were not disclosed, the market responded positively, with ABS-CBN shares soaring by 18.06 percent to P5.10 each on Thursday. This surge in share price suggests that Leviste’s stake is valued at around P390 million.
Expressing his intentions, Leviste stated, “I hope there may now be a way for us to be of help, for the benefit of ABS-CBN’s shareholders and employees, and the media industry of the Philippines.”
His stake comprises 75.88 million ABS-CBN shares held by his company, LL Holdings Inc., in addition to Countryside Investments Holdings Corp., another Leviste-owned entity, which holds 619,000 ABS-CBN Holdings Corp. shares currently undergoing conversion into ABS-CBN shares.
ABS-CBN Holdings issues Philippine Depositary Receipts to foreign investors as a means of raising capital.
Senator Loren Legarda, who previously served as an ABS-CBN news anchor from 1986 to 1998, abstained from voting on the franchise renewal in 2020 due to a perceived conflict of interest, sparking public controversy. The franchise renewal was ultimately denied by Congress, leading to ABS-CBN going off the air and affecting thousands of employees.
Astro del Castillo, managing director at First Grade Holdings, believes Leviste’s investment will provide ABS-CBN with essential capital to fund operations, expand its reach, and invest in new content, potentially attracting more advertisers and investors.
Despite ABS-CBN’s reported losses in its broadband and cable television unit last year, Del Castillo views Leviste’s investment as a strategic move to diversify his business portfolio and mitigate overall risk.
Juan Paolo Colet, managing director at China Bank Capital Corp., praised Leviste’s acumen in identifying undervalued companies with turnaround potential. Colet emphasized the importance of Leviste’s role in ABS-CBN’s strategic direction, particularly regarding board membership and active involvement.
Leviste recently sold his majority stake in SPNEC to a subsidiary of Manila Electric Co. (Meralco) for P15.9 billion in December to finance his 3,500-megawatt solar project. Additionally, Leviste became the largest individual shareholder of Roxas and Company Inc. after acquiring a 7.55-percent stake in March.