By Raissa Robles

Solicitor-General Jose Calida has made it very, very clear that Philippine Depositary Receipts or PDRs are bad for media companies.

PDRs are financial instruments sold to local and foreign investors by ABS-CBN through a separate company called ABS-CBN Holdings Corp. When ABS-CBN gives out dividends, ABS-CBN Holdings obtains part of the dividends, which are then distributed to the PDR holders, minus a management fee.

Calida said ABS-CBN’s use of PDRs violates the Constitution which requires media companies to be 100% Filipino-owned. He warned that “criminal liability is also imposed on those who violate foreign equity restrictions and evade nationalisation laws of the Philippines through various modes of proxy arrangement, making it appear as legal, but the entirety of the arrangement is to accomplish a transaction not allowed under Philippine laws”. To read the rest, please click on this link.