Breaking: ABS-CBN and TV5 agree to terminate investment agreement

ABS-CBN and TV5 have mutually agreed to terminate the investment deal by the latter.

Canceled deal

The ABS-CBN and TV5 deal is canceled

This is covering the proposed acquisition of ABS-CBN of 34.99 percent equity interest in TV5 and the Convertible Note Agreement covering the subscription by ABS-CBN to a Convertible Note to be issued by TV5.

The press release

The termination was also formalized through a Memorandum of Agreement. The involved parties also said they have not implemented any of the transactions covered by the Investment Agreement and the Convertible Note Agreement.

Meanwhile, in a separate to both the Philippine Stock Exchange (PSE) and Securities and Exchange Commission (SEC) today, Sky Vision, ABS-CBN, and Cignal Cable also agreed to terminate the Sale and Purchase Agreement dated August 10, 2022. This is the proposed acquisition of 38.88 percent equity interest in Sky Cable Corporation.

To recap, the House Committees on Legislative Franchises, and trade and industry started their investigation on the multi-billion peso deal recently. Some of the issues pointed out were the alleged foreign ownership of the Pangilinan-led firm and their block time agreement.

What do you guys think?

Source: The Philippine Star