The ABS-CBN Corp., owned by the Lopez family, announced that it will acquire 6.46 million shares of TV5 Network Inc. of business tycoon Manny Pangilinan.
The said shares have a total amount of Php2.16 billion, which includes the acquisition of new common shares of TV5. This gives ABS-CBN 34.99% stake in what used to be its rival network.
MediaQuest Holdings, owner of TV5, will stay the majority shareholder with its remaining 64.79% stake in the network.
It was also revealed that both companies will make a convertible note agreement, which, in about eight years, will include the conversion of additional 5.5 million shares. Once that’s done, ABS-CBN will own TV5’s 49.92% of outstanding capital stock.
In a statement, ABS-CBN said that the deal is “transformational for both companies” and is expected to enhance TV5’s capabilities to deliver content and coverage.
ABS-CBN also said that the deal is “consistent” with the government’s policies. They emphasized that it will be TV5’s nationwide network that will be used to up their coverage, especially in remote areas.
“In partnership with TV5, we look forward to reaching viewers both on owned platforms and through other broadcast partners, thereby enriching the Philippine creative industry. We hope the industry evolves from being highly competitive to increasingly collaborative, which benefits all stakeholders in the long run,” said ABS-CBN president and CEO Carlo Katigbak.
“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,” MediaQuest chair Manny Pangilinan said.
Via: CNN Philippines