ABS-CBN Corp. said Thursday it signed a deal to sell three hectares of its property in Quezon City to developer Ayala Land Inc. for P6.2 billion.
ABS-CBN said in a disclosure to the Philippine Stock Exchange it signed a memorandum of agreement with Ayala Land for the sale of 30,000 square meters out of the total 44,027.30 square meters of the property.
The transaction is subject to certain conditions, including the Philippine Competition Commission (PCC) clearance.
ABS-CBN said the total purchase price of P6.2 billion would be paid on an installment basis, while the downpayment would be placed in an escrow account to be released to ABS-CBN upon completion of certain conditions and signing of the deed of absolute sale.
The balance is payable in installment over 10 years.
ABS-CBN said it would consolidate its operations in the remaining 1.4 hectares of the Quezon City property.
“Proceeds of the sale of property will be used to partially pre-pay its outstanding bank loans,” it said.
ABS-CBN posted a net loss of P2.59 billion in the first three quarters of 2024. Its consolidated revenue amounted to P12.12 billion in the nine-month period, down by 10.4 percent from the same period last year.
The National Telecommunications Commission (NTC) in 2020 ordered ABS-CBN to stop operations following the expiration of its congressional franchise.
Republic Act No. 7966, which granted ABS-CBN a 25-year franchise to operate TV and radio broadcasting stations, expired on May 4, 2020.
The Radio Control Law bars the operation of a radio broadcasting station without a franchise from Congress.