Media companies ABS-CBN Corp and TV5 Network Inc have announced that they will no longer pursue their planned investment deal.
In a disclosure to the Philippine Stock Exchange this Thursday, ABS-CBN said it agreed with TV5, “to terminate the Investment Agreement dated 10 August 2022 covering the proposed acquisition by ABS-CBN of 34.99% 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.”
It was also announced that the termination of the agreement was stated in 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,” according to ABS-CBN.
The announcement was made a week after the two companies announced that they temporarily halted the planned investment deal to address some issues raised by lawmakers and the National Telecommunications Commission (NTC) regarding it.
On May 2020, when the House of Representatives no longer approved the franchise of ABS-CBN and their operation was stopped.
This past August, ABS-CBN, and TV5 announced their investment agreement. This includes ABS-CBN’s acquisition of 6,459,393 primary (new) common shares of TV5, “representing 34.99% of the total voting and outstanding capital stock of TV5 for an aggregate subscription price of P2.16 billion.”
ABS-CBN, TV5 cancels investment deal
Among the failed plans was Cignal Cable’s acquisition of a 38.88% equity interest in Sky Cable Corp.
Before this, some lawmakers filed a resolution requesting to look into the investment deal plan of the two companies and find out if any law was violated in the agreement.
In July 2020, the House Committee on Legislative Franchises voted to deny the franchise renewal application of ABS-CBN Broadcasting Corporation.
The committee adopted the Technical Working Group’s (TWG) Committee Resolution, which recommended denying the ABS-CBN’s franchise renewal application through 70 yes votes, 11 no votes, two inhibitions, and one abstention.
The TWG also said ABS-CBN could not invoke the freedom of the press in justifying its franchise application.
“It is what it is — a denial of a privilege granted by the State because the applicant was seen as undeserving of the grant of a legislative franchise. By no means can this franchise application be related to press freedom. If it were so, then all applicants for legislative franchises covering mass media could simply claim such freedom and force the hand of this Committee each time,” the Committee Resolution read.