Media giants ABS-CBN Corp. and TV5 Network, Inc. on Wednesday, Aug. 10. has officially signed an investment agreement that allows “Kapamilya” shows to air on the “Kapatid” network, after more than a year of negotiations.
In a joint statement, the agreement allows ABS-CBN to acquire over Php 6.46 million primary common shares in TV5, representing 34.99 percent of the total voting and outstanding capital of TV5 for a Php 2.16 billion aggregate subscription price.
“We welcome the entry and investments of ABS-CBN in TV5, as ABS-CBN has always been the leading developer and provider of Filipino-related entertainment content in the Philippines and overseas. Our companies have always had these cherished values of providing top and quality programs in the service of the Filipino people and together we believe we can achieve this in greater measure and success,” Manuel V. Pangilinan, Chairman of Mediaquest Holdings said.
After the subscription consummation, it said that the equity of MediaQuest, the media conglomerate operating TV5, will be reduced to 64.7 percent of the voting and outstanding capital stock.
MediaQuest group will still remain TV5’s controlling shareholder.
The two media companies will also execute a convertible note agreement wherein ABS-CBN will invest in Php 1.8 billion convertible notes to be issued by TV5.
“The Convertible Note Agreement will allow ABS-CBN, subject to obtaining applicable regulatory approvals, to acquire additional primary common shares of TV5 after 8 years from the issuance of the Convertible Note, and thereby increase its equity in TV5 to no more than 49.92 percent of the outstanding capital stock of TV5,” it said in the statement.
The proceeds in the ordinary shares and the convertible note in the total amount of Php 4 billion will fund TV5’s capital expenditures and operating expenses to enhance its content, programming, and public service offerings.
ABS-CBN Chairman Mark Lopez expressed his excitement about the partnership.
“We are excited with this partnership as we see the opportunity to help TV5 grow and strengthen its free-to-air network. For ABS, it presents a fantastic platform for us to achieve synergies in producing content and talent management and maximize our content delivery. We look forward to being of greater service to the public as we come together in taking TV5 to the next level,” he said.
ABS-CBN President and CEO Carlo Katigbak also extended his message.
“This partnership is consistent with the strategic intention of ABS-CBN to evolve into a storytelling company whose goal is to reach as wide an audience as possible. In partnership with TV5, we look forward to reaching viewers both on owned platforms and other broadcasting partners, thereby enriching the Philippine creative industry,” He said.
He added, “We hope the industry evolves from being highly competitive to increasingly collaborative, which benefits all stakeholders in the long run.”
