It would have required at least a dozen large maletas, bodyguards to carry the suitcases and SUVs with armed escorts to transport the cash but this was not that kind of deal.
Instead, tycoons Eugenio ‘Gabby’ Lopez III and Ramon ‘RSA’ Ang sealed their historic deal last Friday as businessmen do – using checks as payment – in a transaction valued at roughly P11 billion to P12 billion, as I said, or to be exact, P11.56 billion, representing the 25.7 percent stake of Gabby’s family in Lopez Inc., which is valued at P45 billion.
The deal, in which RSA acquired the 25.7 percent stake, was finalized in a prized Forbes house not far from the Manila Polo Club and a famed embassy.
Prior to Friday’s transaction, RSA also issued checks last month as a downpayment or was it a lock-in payment? I hinted about this in my July 22 column, ‘White knight makes down payment on Lopez empire.’
The deal did not happen overnight but had been brewing for months now. Sources said RSA was willing to help the Lopez family, who he said are all his friends, but only if he would be asked to, which Gabby did.
Now the question on everyone’s mind is what will Gabby Lopez do with this manna from his good friend, RSA?
Back to ABS-CBN
The amount is not entirely Gabby’s money, of course, but it belongs to his branch of the Don Eugenio Lopez heirs.
Gabby, as I hinted in my column last Tuesday, would use part of the proceeds to save ABS-CBN, the family’s media crown jewel that has been beset with financial problems since losing its franchise in 2020.
Last I heard, ABS-CBN has a P5-billion loan with BPI whose maturity was extended on April 30, 2026. A P4.75-billion loan with Union Bank was likewise extended to June 30, 2026, according to a July 31 disclosure.
I am not sure if these loans have been settled. No other disclosures on that have been made yet.
In any case, Gabby can provide that P2-billion cash infusion for ABS-CBN, which his cousin Piki earlier refused to do, among the reasons cited for the family feud.
ABS-CBN can issue new shares and pave the way for Gabby’s reinvestment and eventual comeback.
He earlier hinted at this in his statement when he explained why he sold his shares:
‘The first is my family,’ he said.
‘This dispute has not been good for any of us, or for the people who work in our companies. This allows us to take a step toward the restoration of family peace.
‘The second is that it allows me to channel our family’s resources into businesses aligned with our personal mission. We will announce more on this in due time.’
True enough, the Gabby Lopez-led majority said late yesterday that they would invest P2.2 billion in ABS-CBN. The funds would come from their personal resources.
‘ABS-CBN has been part of this family for generations. The mission my father set out to pursue remains the heartbeat of this family – to be in the service of the Filipino. We are putting our own money behind this conviction,’ Gabby said on behalf of the Lopez majority.
‘RSA bought economics’
As for RSA, a 25.7 percent stake in Lopez Inc. is large enough to make him an important shareholder.
In practical terms, RSA has a seat at the table though he does not hold the steering wheel, says fund manager Eric Jurado.
In a research note, Jurado also points out:
That the most interesting part of the transaction is unarguably ABS-CBN.
Lopez Holdings has a substantial economic exposure to ABS-CBN, but that exposure is structured through Philippine Depositary Receipts, or PDRs. PDRs can provide the economic benefits associated with an underlying share without transferring the voting rights attached to that share.
That distinction is particularly important for a Philippine mass media company because the Constitution imposes strict Filipino ownership requirements.
Under the existing structure, the economic interest and voting rights are therefore separated. RSA’s investment at the Lopez Inc. level can give him an indirect economic interest in the ABS-CBN exposure without giving him voting control over ABS-CBN’s media operations.
Lopez Inc., together with ABS-CBN Holdings Corp., continues to control approximately 78.5 percent of ABS-CBN’s total voting power.
The important point for investors is simple: RSA’s arrival does not fundamentally change who controls ABS-CBN.
As for the listed value of RSA’s investment, Jurado said:
Using the Aug. 7, 2026, market capitalizations supplied for the listed companies, applying RSA’s indirect economic percentages produces approximately P12.02 billion of apparent indirect economic exposure:
Lopez Holdings Corp. (LPZ): P3.21 billion
First Philippine Holdings Corp. (FPH): P3.26 billion
First Gen Corp. (FGEN): P4.02 billion
Rockwell Land Corp. (ROCK): P1.31 billion
ABS-CBN: P0.23 billion
Total: approximately P12.02 billion
But Jurado also noted that this is a corporate pyramid.
For example, FPH owns an interest in FGEN and ROCK. FPH’s own market capitalization therefore already incorporates the value of those underlying investments. Likewise, LPZ’s valuation reflects its interests further down the structure.
Adding LPZ, FPH, FGEN and ROCK together therefore creates double counting.
‘The P12.02-billion figure is therefore best understood as a look-through illustration of his economic exposure, not as the amount of listed equity he independently owns,’ Jurado said.
In any case, RSA, he said, brings financial strength and significant strategic relationships to a group with major interests in energy, infrastructure and property.
As for me, I find it really interesting that tycoon Enrique Razon and RSA now find themselves increasingly part of the story surrounding the Lopez Group.