AYALA LAND, Inc. (ALI) has signed a memorandum of agreement to acquire a portion of ABS-CBN Corp.’s property in Quezon City for P6.24 billion.
In separate disclosures on Thursday, ABS-CBN and property company Ayala Land confirmed the agreement for the sale of ABS-CBN’s property in Quezon City.
The sale covers up to 30,000 square meters, or 68.14% of ABS-CBN’s 44,027.30-square-meter property.
The agreement is subject to certain conditions, including clearance from the Philippine Competition Commission (PCC).
The two parties agreed on the valuation after negotiations and a due diligence review, ABS-CBN said.
Following the sale, ABS-CBN will consolidate its operations within the remaining 1.4-hectare property in Quezon City.
ABS-CBN said proceeds from the sale will be used to prepay its outstanding bank loans.
“Down payment shall be placed in an escrow account to be released to ABS-CBN upon completion of certain conditions precedent and signing of the Deed of Absolute Sale. The balance shall be payable in installments over 10 years,” ABS-CBN said.
For the third quarter of last year, ABS-CBN’s attributable net loss narrowed to P389.87 million, down from P1.02 billion in the same period a year ago. Revenues for the period declined to P4.33 billion from P4.73 billion in the third quarter of 2023.
At the local bourse on Thursday, ABS-CBN shares closed 12 centavos higher at P4.75 apiece. — Ashley Erika O. Jose