ABS-CBN, TV5 end investment deal

Media companies ABS-CBN Corp. and TV5 Network Inc. have terminated their planned investment deal.

In a disclosure to the Philippine Stock Exchange on Thursday, ABS-CBN said it agreed with TV5 “to terminate the Investment Agreement dated 10 August 2022 covering the proposed acquisition by ABS-CBN of 34.99% equity interest in TV5 and the Convertible Note Agreement dated 10 August 2022 covering the proposed subscription by ABS-CBN to a Convertible Note to be issued by TV5.”

It added that the termination “was also formalized through a Memorandum of Agreement.”

“The Parties confirmed that they have not implemented any of the transactions covered by the Investment Agreement and the Convertible Note Agreement,” ABS-CBN said.

The announcement came a week after both companies announced they are putting on hold their planned investment deal to address the issues that have been raised by certain legislators and the National Telecommunications Commission (NTC).

ABS-CBN went off the air in May 2020 in compliance with the National Telecommunications Commission's order for it to cease operations after its legislative franchise expired.

The two firms in early August announced their investment agreement that will allow ABS-CBN to "acquire 6,459,393 primary (new) common shares in TV5 representing 34.99% of the total voting and outstanding capital stock of TV5 for an aggregate subscription price of P2.16 billion."

Lawmakers, however, filed resolutions seeking to look into the franchise of TV5 for possible violations over its alleged foreign ownership and its block time agreement with ABS-CBN.

Sagip party-list Rep. Rodante Marcoleta said the Philippine Competition Commission and the NTC should carefully review the agreement to ensure it is in accordance with the law as it may lead to a monopoly.

NTC Commissioner Gamaliel Cordoba, for his part, earlier said the commission would review the partnership agreement due to the alleged violations of ABS-CBN.

At the same time, Sky Vision Corp., ABS-CBN, Lopez Inc., and Cignal Cable Corp. announced that they have mutually agreed to terminate the Sale and Purchase Agreement dated August 10, 2022, covering the proposed acquisition by Cignal Cable of 38.88% equity interest in Sky Cable Corp.

The Debt Instruments Agreement dated August 10, 2022, covering the proposed subscription by Cignal Cable to an Exchangeable Debt Instrument to be issued by Sky Vision and the proposed acquisition by Cignal Cable of a Convertible Note issued by Sky Cable was also terminated. —KBK, GMA News