BIZ BUZZ: Endgame for the Lopez feud?

Could one of the most riveting boardroom dramas seen in corporate Philippines finally be nearing its finale?

Investors seemed to think so.

Lopez Holdings Corp. surged nearly 39 percent last week, with First Philippine Holdings Corp. (FPH) and ABS-CBN also joining the rally after reports that a strategic investor is in advanced talks to buy a controlling 70.8-percent stake in privately held Lopez Inc.

For COL Financial chief equity strategist April Lynn Tan, the excitement goes beyond the reported P45-billion price tag.

Yes, the valuation caught investors’ attention.

If the reported figure holds, Lopez Inc. would be worth roughly P63.5 billion—far above the combined market value of its two crown jewels, listed Lopez Holdings and ABS-CBN.

But Tan believes the bigger prize is certainty.

A change in control could finally settle the internal tug-of-war that has divided the Lopez family over the group’s future.

One camp backed the Prime Infra transaction engineered by Federico “Piki” Lopez, while another preferred channeling fresh capital into ABS-CBN.

A sale, Tan said, would allow each side to pursue its own priorities instead of prolonging the dispute.

Just as important, it could remove an overhang that has weighed on FPH and First Gen, whose major transactions have been caught in the crossfire of the family’s differences.

For investors, it seems the prospect of peace may be worth almost as much as the deal itself.

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