Manny Pangilinan-owned Cignal Cable Corporation invests in Lopez’s Sky Cable Corporation.
This is part of the recent partnership between the two conglomerates after ABS-CBN invested Php2.1 billion in TV5 as it acquires a 34.99% stake in the latter.
Now, Cignal Cable is acquiring 38.88% of Sky Cable for an amount of Php2.86 billion.
Along with the sale and purchase agreement, the two companies have also accomplished a depth measurement agreement, which states that SkyCable stakeholder Sky Vision Corporation will issue an exchangeable debt instrument to Cignal cable that has a face value of Php4.39 billion.
The said debt instrument will give Cignal Cable an option to acquire more SkyCable shares equivalent to 61.12% eight years from its issuance.
It will also allow Cignal to get a convertible note issued by SkyCable that has a face value of Php250 million and convertible into SkyCable primary shares that’s about 1.84% of outstanding capital stock.
“The proceeds of the sale of the sale shares, the convertible note, and the issuance of the debt instrument in the total amount of P7.5 billion will be used to repay certain obligations of ABS-CBN and Sky Vision and to fund the investment of ABS-CBN in TV5,” said PLDT.
“The investment of Sky Cable by Cignal Cable is expected to benefit the former’s existing customer base consisting of over 300,000 cable subscribers and close to 350,000 broadband subscribers as of the end of June 2022,” PLDT added.