The cable unit of PLDT Group is acquiring a 38-percent stake in SkyCable Corp., a subsidiary of ABS-CBN Corp., for P2.8 billion.
ABS-CBN will then use the proceeds to finance its investment in TV5 Network Inc.
Cignal Cable Corp. of the PLDT Group signed a sale and purchase agreement with Sky Vision Corp., ABS-CBN Corp. and Lopez Inc. for the acquisition of 38.88 percent of the total issued and outstanding capital stock of Sky Cable for P2.8 billion.
Simultaneous with the execution of the sale and purchase agreement, the parties executed a debt instrument agreement where Sky Vision agreed to issue an exchangeable debt instrument to Cignal Cable with a face value of P4.38 billion.
ABS-CBN and TV5 Network also executed 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 P2.16 billion.
MediaQuest Group’s equity in TV5 will be reduced to 64.79 percent of the voting and outstanding capital stock and will remain the controlling shareholder of the network. MediaQuest is controlled by the PLDT Group.