Lower House tackles ABS-CBN franchise anew, network clarifies PDR holders have no ownership rights

As the Lower House resumed its hearing on the ABS-CBN franchise, lawmakers focused on matters concerning the Philippine Depository Receipts of the network.
ABS-CBN clarified PDRs have nothing to do with its broadcasting operations and shares of its broadcasting network. PDR holders are different from shareholders. Foreign investors in PDRs are only for ABS-CBN holdings and do not have rights to own or run the company.

“The PDRs have a life of its own. Hindi po ‘yan naka-attach sa shares ng ABS-CBN broadcasting. They trade independently. There are financial and cash distributions separately given by ABS-CBN holdings,” ABS-CBN legal counsel Atty. Cynthia Del Castillo explained.

However, some solons believe otherwise. Ang PDRs po ay pagtatago sa tunay na pagmamay-ari ng dayuhan. Ang ibig pong sabihin, ang lahat ng kita ng PDR, pupunta doon sa may hawak ng PDR. Ang PDR po, one existing share is equal to 1 PDR (PDRs are hiding the real ownership of foreigners. This means, all earnings of the PDR will go to the holder of the PDR. One existing share is equal to 1 PDR),” Rep. Mike Defensor claimed.

Meanwhile, the Supreme Court is set to tackle petitions related to ABS-CBN’s franchise on July 13.

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