The planned P6.75 billion acquisition of ABS-CBN Corporation’s Sky Cable by PLDT Inc. will no longer push through as both parties have mutually decided not to proceed with the transaction for undisclosed reasons.

“Following this development, Sky Cable is pleased to announce that its cable TV service will continue, assuring its subscribers that they can maintain their subscriptions.  Meanwhile, Sky’s internet broadband service, SKYFiber remains unaffected,” ABS-CBN said in a disclosure to the Philippine Stock Exchange (PSE).

It added that “we thank all our Sky subscribers for their continued patronage and support. We remain committed to providing the same level of customer experience and service for both our cable and internet services.”

It could be recalled that the two firms had agreed on the acquisition and signed a Sale and Purchase Agreement in March 2023. PLDT was supposed to buy Sky’s broadband business while the cable television business will be shut down by Sky prior to the change of ownership.

Under the agreement signed last year, PLDT planned to acquire all the issued and outstanding capital stock of Sky from Sky Vision Corporation, ABS-CBN, and Lopez Inc.

Sky is primarily engaged in the business of providing broadband services marketed as “Sky Fiber” and enterprise cable broadband services marketed as “Sky Biz.” In addition to broadband business, Sky also provides pay TV and cable services.

The planned acquisition by PLDT covers the broadband business and the related assets of Sky subject to compliance with certain conditions including the termination or cessation of operations by Sky of its pay TV and cable businesses, obtaining all applicable government approvals and clearances, and obtaining all required consents and corporate actions.

The proposed acquisition consists of 1.38 billion Sky shares priced at P4.9043 per share based on the agreed implied equity valuation of Sky less recorded payables and contingent liabilities.

PLDT was supposed to pay P6.345 billion representing 94 percent of the Purchase Price on the Closing Date while the balance of P405 million will be paid upon delivery of the Certificate Authorizing Registration/Tax Clearance issued by the Bureau of Internal Revenue for the sale and purchase transaction and compliance with other post-closing deliverables.

“The proceeds to be received by Sky Vision will be used, among others, to settle its obligations, including its obligations to ABS-CBN,” the firm said last year.

It noted that “this was a strategic decision resulting from, among other things, the significant capital expenditure requirements of Sky Cable to maintain its competitiveness.”

The proceeds from the sale of the shares of ABS-CBN and the settlement of Sky Vision's obligations to ABS-CBN will be used by ABS-CBN to settle and fund its retirement obligations. The sale of the company's ownership in Sky will also allow ABS-CBN to focus its resources on content creation.

PLDT said the proposed transaction was expected to benefit the existing broadband subscribers of both PLDT and Sky by strengthening and expanding the coverage of their offerings and services, particularly in remote areas; and upgrading overall customer experience through the combined expertise, resources, and capabilities of PLDT and Sky.