ABS-CBN Corp. and TV5 Network Inc. on Thursday announced the termination of their planned multibillion-peso investment deal amid oppositions from certain lawmakers and the National Telecommunications Commission (NTC).
The Lopez-led company and Pangilinan-led broadcasting company have mutually agreed to terminate the investment agreement dated August 10 covering the proposed acquisition by ABS-CBN of 34.99 percent stake in TV5 for P2.16 billion.
The two companies also terminated the convertible note agreement in 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 to acquire additional primary common shares of TV5 after eight years to no more than 49.92 percent.
The termination was 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,” ABS-CBN said.
The partnership was intended to expand ABS-CBN’s audience reach after the cancellation of its legislative franchise, while helping TV5 grow and strengthen its free-to-air service.
In addition, Sky Vision Corporation, ABS-CBN, Lopez, Inc., and Cignal Cable Corporation have mutually agreed to terminate the acquisition of Cignal Cable of 38.88 percent stake in SkyCable for P2.8 billion.
The companies also terminated the debt instrument agreement worth P4.38 billion which would allow the Cignal to acquire the remaining 61.12-percent share in the Lopez-led cable company after eight years.
“The Parties confirmed that they have not implemented any of the transactions covered by the Sale and Purchase Agreement and the Debt Instruments Agreement,” ABS-CBN said.