Media giants ABS-CBN Corp. and TV5 Network Inc. announced on Thursday that they mutually agreed to terminate their investment agreement.
In an official statement, ABS-CBN said the termination of the investment deal was disclosed to the Philippine Stock Exchange (PSE) and the Securities Exchange Commission (SEC) on Thursday morning.
The two media companies agreed to terminate the investment deal that they signed last Aug. 10 that would have allowed ABS-CBN to acquire 34.99 percent of TV5's equity interest.
The convertible note agreement “covering the proposed subscription by ABS-CBN to a Convertible Note to be issued by TV5” was also terminated.
“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,” it said.
In a separate disclosure to the PSC and SEC, ABS-CBN said Sky Vision Corp., Lopez Inc., and Cignal Cable Corp. also mutually agreed to terminate the Sale and Purchase Agreement signed Aug. 10 “covering the proposed acquisition by Cignal Cable of 38.88 percent equity interest in Sky Cable Corp.”
Likewise, they also terminated the Debt Instruments Agreement “covering the proposed subscription by Cignal Cable to an Exchangeable Debt Instrument to be issued by Sky Vision and the proposed acquisition by Cignal Cable of a Convertible Note issued by Sky Cable.”
A memorandum agreement to formalize the termination was also accomplished by the parties involved.
ABS-CBN and TV5 earlier paused the investment deal to answer the issues raised by legislators and the National Telecommunication Commission (NTC).
SAGIP Party-List Representative Rodante Marcoleta first asked the NTC and Philippine Competition Commission (PCC) to review the partnership deal between the two media networks.
