Giant networks ABS-CBN and TV5 announced on Sept. 1 that they have mutually agreed to terminate an investment partnership.
The full statement issued by both networks:
"In disclosures to both the Philippine Stock Exchange and the Securities Exchange Commission today, Sky Vision Corporation (“Sky Vision”), ABS-CBN Corporation, Lopez, Inc., and Cignal Cable Corporation (“Cignal Cable”) announced that they have mutually agreed to terminate the sale and purchase Agreement dated 10 August 2022 covering the proposed acquisition by Cignal Cable of 38.88 percent equity interest in Sky Cable Corporation and the Debt Instruments Agreement dated 10 August 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.
"The termination was formalized through a Memorandum of Agreement.
"The Parties confirmed that they have not implemented any of the transactions covered by the Sale and Purchase Agreement and the Debt Instruments Agreement.
"In a separate disclosure, TV5 Network, Inc. (“TV5”) and ABS-CBN Corporation ("ABS-CBN") also announced that they have mutually agreed to terminate the Investment Agreement dated 10 August 2022 covering the proposed acquisition by ABS-CBN of 34.99 percent 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.
"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."
On Aug. 11, ABS-CBN Corporation (“ABS-CBN”) and TV5 Network, Inc. (“TV5”), announced the execution of an Investment Agreement that will allow ABS-CBN to acquire 6,459,393 primary (new) common shares in TV5 representing 34.99 percent of the total voting and outstanding capital stock of TV5 for an aggregate subscription price of P2.16Bn.
However, on Aug. 24, both networks agreed to pause an investment deal in connection with the execution of an Investment Agreement.
READ MORE: https://mb.com.ph/2022/08/24/abs-cbn-tv5-agree-to-pause-on-landmark-deal/
The full statement in delaying the investment partnership:
“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 pause will give the space for both media organizations to respond to the issues and accommodate any relevant changes to the terms.
“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.”
However, on Sept. 1, both networks announced in a joint statement that they decided to terminate the deal.