ABS-CBN scores PCC approval to sell Sky Cable to Pangilinan's PLDT

The sale of ABS-CBN Corp.'s broadband business under Sky Cable to Pangilinan-led PLDT Inc. is now one step closer to being finalized, as the multimedia producer on Monday said it has scored the approval of the country's anti-trust watchdog for the transaction.

In a corporate disclosure to the local bourse, ABS-CBN said the Philippine Competition Commission (PCC) allowed the sale of Sky Cable's broadband business and related assets to PLDT Inc. on Friday, January 19, 2024.

"The proposed transaction is, however, still subject to a number of closing conditions," the disclosure read, adding that an update will be made on March 16 when material information becomes available.

Under a sale and purchase agreement entered into in March 2023, PLDT agreed to acquire 100% of Sky Cable's 1.38 billion outstanding capital stock for P6.75 billion from three Lopez-led firms — Sky Vision Corp., ABS-CBN Corp., and Lopez Inc.

PLDT last year said the acquisition will benefit broadband subscribers of the two companies, as this will boost the coverage of their offerings and services, particularly in remote areas.

The parties earlier explained that Sky Cable’s cable and pay television services will be closed down in preparation of the transaction. Sky Cable will then be left exclusively with its broadband business.

The telecommunications firm in 2020 said it put in an offer to acquire Sky Cable, as it was encouraged by Bayanihan Act 2, which exempted mergers and acquisitions valued below P50 billion from compulsory PCC notifications.

It dropped the bid, however, as it said a review by the firm and its legal council found that there was a risk of possible divestment on review starting the second year of the act.

Under its mandate, the PCC is tasked to implement the national competition policy and enforce the competition law that promotes and protects competitive markets.

To recall, the National Telecommunications Commission (NTC) in June 2020 ordered Sky Cable to stop its direct broadcast services under SkyDirect, citing the expiration of its legislative franchise. —KBK/RSJ, GMA Integrated News