Mutual Agreement Reached Between ABS CBN and TV5 to Terminate Investment Deal

ABS CBN Corp. announced the termination of its investment deal with TV5 Network Inc. late last week. “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% equity interest in TV5,” stated the media company.

Initially, the investment deal would have enabled ABS CBN to acquire 6.46 million new primary common shares in TV for ₱2.16 billion. “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,” the statement furthered.

A few weeks prior, lawmakers and the National Telecommunications Commission (NTC) raised issues resulting in the deferment of the deal. ABS CBN and TV5 aimed to complete the agreement within August. The House of Representatives later launched a probe to ascertain if the deal violated any laws. Albay Rep. Edcel Lagman noted that this investigation could lead to the “derogation of press freedom and free speech.”

“There is absolutely nothing wrong with that arrangement. What is definitely errant is when authorities trample on the freedom of expression and of the press,” explained Lagman. The NTC also urged both media companies to secure government clearances before the investment is approved. However, Infrawatch PH affirmed that “the transaction breaches no NTC regulation, as ABS-CBN has more than adequately shown that it has no outstanding obligations in any agency of government.”

Additionally,  Sky Vision Corp., Lopez Inc., and Cignal Cable Corp. reached a mutual agreement for the termination of the Sale and Purchase Agreement, which proposed Cignal Cable’s acquisition of 38.88% equity interest in Sky Cable Corp. Along with this other deals were, likewise, discontinued such as the Debt Instruments Agreement and the Convertible Note Agreement. The former covered the proposed subscription by Cignal Cable to an Exchangeable Debt Instrument to be issued by Sky Vision.

Sources: ABS CBN, Inquirer