After over a year of negotiations, ABS-CBN and TV5 on Thursday, Aug. 11, announced via a statement that they have finally reached an agreement.
The deal will allow ABS-CBN to acquire shares in TV5 representing 34.99% of the total voting and outstanding capital stock of the network for 2.16 Billion pesos.
Following the agreement, the equity of MediaQuest group, operator and owner of TV5, will be reduced to 64.79% but they will remain as the controlling shareholder of TV5.
Manuel V. Pangilinan, Chairman of Mediaquest Holdings said, “We welcome the entry and investment of ABS-CBN in TV5, as ABS-CBN has always been the leading developer and provider of Filipino-related entertainment content not only in the Philippines but overseas as well. Our companies have always had these cherished values of providing top and quality programs in the service of the Filipino people and together we believe we can achieve this in greater measure and success”.
Mark Lopez, Chairman ABS CBN said, “We are excited with this partnership as we see the opportunity to help TV5 grow and strengthen its free to air network. For ABS, it presents a fantastic platform for us to achieve synergies in production content and talent management as well as maximizing our content delivery. We look forward to be of greater service to the public as we come together in taking TV5 to the next level.”
Carlo Katigbak, President and CEO of ABS-CBN added, “This partnership is consistent with the strategic intention of ABS-CBN to evolve into a storytelling company whose goal is to reach as wide an audience as possible. In partnership with TV5, we look forward to reaching viewers both on owned platforms and through other broadcast partners, thereby enriching the Philippine creative industry. We hope the industry evolves from being highly competitive to increasingly collaborative, which benefits all stakeholders in the long run.”
Simultaneously with the execution of the Investment Agreement, the parties will execute a Convertible Note Agreement.
With a face value of 1.84 billion pesos to be issued by TV5, it will allow ABS-CBN, subject to obtaining applicable regulatory approvals, to acquire additional primary common shares of TV5 8 years after the issuance of the same. The transaction is expected to be completed within this month.
