PLDT Inc. is acquiring the cable unit of ABS-CBN Corp. for P6.75 billion six months after the parties mutually agreed to terminate an earlier aborted multibillion-peso transaction.
ABS-CBN, in a disclosure to the Philippine Stock Exchange (PSE), said its board of directors approved on March 16 the sale of its interests in Sky Cable Corporation directly or indirectly representing 58.7 percent of the outstanding capital stock of Sky Cable.
The gross proceeds to be received by ABS-CBN from the sale of shares is about P4 billion.
All the other stockholders of Sky Cable, Lopez, Inc. and Sky Vision Corp. also agreed to sell their shares in Sky Cable to PLDT, Inc.
ABS-CBN said the total purchase price to be paid by PLDT for all the issued and outstanding capital stock of Sky Cable is P6.75 billion.
“The proceeds to be received by Sky Vision will be used, among others, to settle its obligations, including its obligations to ABS-CBN,” the company said.
“The closing of the proposed transaction shall be subject to compliance with certain conditions precedent, which includes, among others, Sky Cable engaging exclusively in the broadband business, with the termination or cessation of operations of its pay TV and cable businesses, and obtaining all applicable government approvals and clearances,” it added.
ABS-CBN said the sale of SkyCable to PLDT was a “strategic decision resulting from, among other things, the significant capital expenditure requirements of Sky Cable to maintain its competitiveness.”
Sky Cable is a provider of cable television and wired broadband services. Its roster of products include SkyCable, a pioneering cable television brand and Sky Fiber, a fiber powered broadband service. Sky also serves the business community through SKYBIZ, its corporate and commercial arm, which offers cable television and customized connectivity primarily in the hospitality sector.
In September 2022, ABS-CBN mutually agreed to pause their investment deal amid issues raised by lawmakers and the National Telecommunications Commission.
This aborted transaction involves ABS-CBN purchasing a 35 percent stake in TV5 Network Inc. and Cignal Cable Corp. of the PLDT Group.
