MANILA, Philippines — ABS-CBN Corp. has agreed to sell nearly 70 percent of its property in Diliman, Quezon City, to Ayala Land Inc. (ALI) for P6.24 billion as part of its efforts to raise funds and reduce its debt.
On Thursday, ABS-CBN confirmed that it had signed a sale agreement for 30,000 square meters (sqm) out of its total 44,027.30 sqm property.
The sale includes ABS-CBN’s main building and production facilities, which are among the network’s most valuable assets.
According to reports, ABS-CBN plans to relocate its operations to the Eugenio Lopez Jr. Communications Center, which is also within the same complex.
Payment Terms and Regulatory Approvals
In a statement, ALI said that the transaction is subject to regulatory approvals, including a clearance from the Philippine Competition Commission (PCC).
Under the agreement, ABS-CBN will receive payments in installments:
- The down payment will be placed in an escrow account and released to ABS-CBN once the deed of absolute sale is signed.
- The remaining balance will be paid over 10 years.
The P6.24 billion transaction value was determined after thorough negotiations and due diligence between both parties.
Funds to Be Used for ABS-CBN’s Debt Payments
ABS-CBN decided to sell the property to help settle its financial obligations. As of September 2023, the company’s total liabilities amounted to P45.12 billion.
Despite ongoing financial struggles, ABS-CBN managed to reduce its net loss in the first nine months of 2023, from P3.15 billion the previous year to P2.41 billion, due to lower production costs.
Previous Attempts to Sell Assets
This is not the first time ABS-CBN has attempted to sell assets to raise capital.
In 2023, ABS-CBN planned to sell its broadband business and other assets of Sky Cable Corp. to PLDT Inc. for P6.75 billion. However, even after securing PCC approval, both ABS-CBN and PLDT decided not to proceed with the deal.
With the sale of part of its Quezon City property, ABS-CBN is taking further steps to restructure its operations and stabilize its finances amid ongoing challenges in the media industry.
