ABS-CBN, TV5 agree ''to a pause in closing preparations''
To address the issues which have been raised by certain legislators and the National Telecommunications Commission on the proposed investment by ABS-CBN for a minority interest in TV5, ABS-CBN and TV5 have agreed to a pause in their closing preparations.
This was announced by ABS-CBN in a disclosure to the Philippine Stock Exchange Wednesday.
This pause will give the space for both media organizations to respond to the issues, and accommodate any relevant changes to the terms, ABS-CBN said.
''Both ABS-CBN and TV5 believe that an agreement between the two media companies will have a favorable impact on Philippine media, and on free-to-air television?which remains the most affordable and extensive source of entertainment and public service to Filipinos,'' ABS-CBN said.
ABS-CBN and TV5 executed on August 11 an investment agreement that will allow the Lopez-led company to acquire 34.9 percent stake in TV5 for P2.16 billion.
The MediaQuest Group will remain to be the controlling shareholder of TV5 with 64.79 percent share.
The two companies also executed a convertible note agreement to which ABS-CBN will invest in a convertible note with a face value of P1.84 billon to be issued by TV5.
The convertible note will allow ABS-CBN, subject to obtaining applicable regulatory approvals, to acquire additional primary common shares of TV5 after eight years to no more than 49.92 percent.
ABS-CBN will use the proceeds from the sale of SkyCable Corp. to Cignal Cable Corp. to finance its investment in TV5. Cignal will initially acquire 38.88 percent of SkyCable for P2.8 billion.
Cignal also entered a debt instrument agreement with SkyCable worth P4.38 billion which would allow Cignal to acquire the remaining 61.12 percent share in the Lopez-led cable company after eight years. DMS
