ABS-CBN shares on trading halt after House denies new franchise application

ABS-CBN News

Posted at Jul 13 2020 09:28 AM

A supporter of ABS-CBN during a rally outside the network's complex along Sgt. Esguerra Ave. in Quezon Vity as House Committee votes to deny the network's new franchise on Friday, 10 July 2020. Larry Monserate Piojo, ABS-CBN News/File

MANILA - Shares of ABS-CBN Corp and the Philippine Deposit Receipts of ABS-CBN Holdings Corp were on trading halt Monday after the company disclosed that the House Committee on Legislative Franchises denied its application for a new franchise, the stock exchange said. 

The Philippine Stock Exchange, in a notice, said it has required the company to submit a full disclosure on the impact of the non-renewal of its legislative franchise on the business, financial conditions and operations as well as future business plans.

The said disclosure will ensure that the investing public has access to full, fair, timely and accurate information, it said.

The House Committee on Legislative Franchises on Friday voted to adopt a technical working group's resolution denying the country's largest news and entertainment network a new 25-year franchise. 

"In view of the foregoing resolution adopted by the Committee on Legislative Franchises on the non-renewal of the Company’s franchise, and pursuant to existing rules, applicable laws and regulations in order to maintain a fair, efficient and orderly trading market, the Exchange will implement a trading suspension on ABS’ shares and the Philippine Deposit Receipts issued by ABS-CBN Holdings Corporation (“ABSP”) effective at 9:00 a.m. today, July 13, 2020," the the notice released Monday said.

The suspension will be lifted after 1 trading day and the dissemination of the full disclosure to the investing public, the PSE said. 

ABS-CBN, under trading symbol "ABS" closed P14.78 per share on Friday.


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