The PSE imposed a one-day trading suspension on ABS-CBN Corporation’s shares following NTC’s closure order.
The Philippine Stock Exchange (PSE) imposed a one-day trading suspension on ABS-CBN Corporation’s shares following the cease and desist order issued by the NTC.
This, as the Philippine Stock Exchange stated in its advisory that the trading suspension would cover the shares of ABS-CBN Corp. as well as the Philippine Depositary Receipts (PDRs) of ABS-CBN Holdings Corp. effective at 9:00 a.m. of May 6, 2020, adding that the suspension will be lifted a day after the distribution of the full disclosure to its investing public.
As per the report, ABS-CBN Corporation’s shares closed Tuesday, May 5, 2020, at PHP 17.50 per share.
ABS-CBN Holdings Corp. was engaged in the issuance of the Philippine Depositary Receipts, the performance of obligations, as well as the acquisition and holing of its shares underlying the Philippine Depositary Receipts in issue from time to time.
The said advisory came after the National Telecommunications Commission (NTC) issued a cease and desist order against ABS-CBN because of the expiration of its congressional franchise, thus, the commission directed ABS-CBN to stop its operations nationwide.
ABS-CBN on Tuesday evening formally signed off after airing its news program, the TV Patrol, in compliance with NTC’s directive.
The said order from the National Telecommunications Commission came as ABS-CBN’s franchise, as per Republic Act No. 7966, was expired last May 4, 2020, thus, the company will no longer have a “valid and subsisting” congressional franchise as required by the law. Also, the commission stated that ABS-CBN would also follow Republic Act No. 3846 or the Radio Control Law.
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