By: Margaret Padilla
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ABS-CBN Corporation and TV5 Network Inc. terminated their proposed investment deal on Thursday, September 1.
According to its disclosure to the regional stock exchange, the Lopez-led media giant will no longer acquire a third or 34.99 percent of TV5 Network Inc. Likewise, Cignal will no longer invest in Sky Cable as first announced in August.
The two networks mutually agreed on the said decision, according to CNN Philippines.
“In a separate disclosure, TV5 Network, Inc. (“TV5”) and ABS-CBN Corporation (“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,” ABS-CBN stated.
“The Parties confirmed that they have not implemented any of the transactions covered by the Investment Agreement and the Convertible Note Agreement,” the disclosure further said.
With the termination of its sale and purchase agreement with ABS-CBN, Lopez Inc., and Sky Vision Crop, Pangilinan-led Cignal Cable’s merger of 39% of Sky Cable will also come to an end.
The TV networks reportedly announced to put on hold their investment agreement more than a week ago, according to CNN, to respond to concerns raised by lawmakers and the National Telecommunications Commission.
During the House investigation, the Securities and Exchange Commission declared that the transaction does not meet the criteria for a merger. While the House committees launched an inquiry to determine whether the agreement violated any laws.
The alleged acquisition as well as issues like the alleged foreign ownership of TV5 and the block time agreement between the two companies have been probed.