RPN-9, IBC-13 sale could fetch a higher price than P3B -- PCGG

REPORT FROM BUSINESS WORLD With the increasing interest among prospective buyers, the Presidential Commission on Good Government (PCGG) yesterday expressed confidence that two state-controlled networks up for privatization could fetch a higher price than earlier estimates. The government hopes to generate more than P3 billion from the sale of sequestered broadcast firms Radio Philippines Network (RPN), and Intercontinental Broadcasting Corp. (IBC) on or before June this year. PCGG commissioner Ricardo Abcede said RPN, which airs on free TV Channel 9, currently has a tag price of about P1.3 billion, while IBC, which has rights to the Channel 13 frequency, is estimated to be worth at least P2 billion. "While these are earlier estimates, I think we can sell the two stations at a better price. There are many interested buyers. I think the government earnings would be bigger," Mr. Abcede told reporters. He said that aside from the much-publicized interest of Philippine Long Distance Telephone Co. Chairman Manuel V. Pangilinan, businessman Wilson Tieng’s Solar Sports and Bro. Mike Velarde of El Shaddai, foreign firms are also interested to acquire channels 9 and 13. While he declined to identify these foreign entities, Mr. Abcede said he has received word that these foreign companies are already scouting for local partners in line with their bid to take over the state-owned broadcast stations. He, however, clarified that the commission has yet to receive formal letters of interest or proposals to bid for the ownership of the television networks. ATTRACTIVE Mr. Abcede brushed aside reports that RPN-9 and IBC-13 are unattractive to potential buyers since the networks’ liabilities were allegedly higher than their remaining assets. He said the government’s financial advisor, CLSA Exchange Corp., has yet to complete its appraisal of the assets of the two television stations. "It is too premature to make that declaration since CLSA has yet to complete its study," Mr. Abcede said. "But that is not true. Those are just speculations," he added. He assured that RPN and IBC has a network of television and radio stations nationwide that are "very attractive to investors." RPN has eight television stations, 14 relay television stations, and 14 radio stations scattered in key provincial cities. Meanwhile, IBC owns 18 television stations, and nine radio stations nationwide. The government has sequestered the two broadcast firms in 1986 from tycoon Roberto S. Benedicto, a known friend of former President Ferdinand E. Marcos. The government got full ownership of RPN-9, and IBC-13 after Mr. Benedicto ceded ownership under a compromise agreement in 1990. -JEFFREY O. VALISNO, Business World Reporter