ABS-CBN, TV5 terminate investment agreement
THE ABS-CBN Corp. and TV5 Network Inc. announced on Thursday, Sept. 1, 2022, the termination of their supposed investment agreement seeking the acquisition of 34.99 percent interest of TV5.
In a statement sent by ABSCBN to the Philippine Stock Exchange (PSE), it said the termination was formalized through a memorandum of agreement (MOA).
“In a separate disclosure, TV5 Network Inc. (TV5) and ABS-CBN Corp. (ABS-CBN) also announced that they have mutually agreed to terminate the investment agreement dated 10 August 2022 covering the proposed acquisition by ABS-CBN of 34.99 percent 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 said.
“The Parties confirmed that they have not implemented any of the transactions covered by the Investment Agreement and the Convertible Note Agreement,” it added.
The firm also disclosed to the PSE and the Securities and Exchange Commission the termination of the Sale and Purchase Agreement between the Sky Vision Corp., ABS-CBN Corp., Lopez Inc. and Cignal Cable Corp.
The agreement covers the proposed acquisition by Cignal Cable of 38.88 percent equity interest in Sky Cable Corp., 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.
The termination was formalized also through a MOA signed by both parties, noting that they have not implemented any of the transactions covered by the Sale and Purchase Agreement and the Debt Instruments Agreement.
The supposed partnership of TV5 and ABS-CBN has been under fire particularly by several members of the House of Representatives.
Three resolutions were filed at the House of Representatives seeking the conduct of a probe into the firms’ partnership.
Among the issues raisedwere the ownership of TV5 and the block time agreement, particularly of the ABS-CBN’s national news program TV Patrol.
ABS-CBN, one of the major television stations in the country, went off-air on free TV in May 2020 after Congress rejected its franchise renewal application due to various violations, including alleged non-payment of right taxes.
It has then entered into block time deals with other media networks, such as Zoe Broadcasting Network and TV5, to enable some of its shows to return to free TV.