Lopez’s Sky Cable Corporation receives investment from Manny Pangilinan’s Cignal Cable Corporation.
ABS-CBN has acquired a 34.99% stake in TV5 as part of its recent partnership with the conglomerate.
Cignal Cable is now completing the acquisition for an amount of ₱2.86 billion, which is 38.88% of Sky Cable.
Aside from the sale and purchase agreement, the two companies have also agreed on a depth measurement agreement, which stipulates that the SkyCable stakeholder Sky Vision Corporation will issue an exchangeable debt instrument worth Php4.39 billion to Cignal Cable under an interchangeable debt instrument agreement.
Cignal Cable will be given an option to acquire more SkyCable shares equivalent to 61.12% eight years after the debt instrument is issued.
SkyCable will also issue Cignal a convertible note worth ₱250 million that will be convertible into SkyCable’s primary stock, or about 1.84% of SkyCable’s outstanding shares.
“The proceeds of the sale of the sale shares, the convertible note, and the issuance of the debt instrument in the total amount of P7.5 billion will be used to repay certain obligations of ABS-CBN and Sky Vision and to fund the investment of ABS-CBN in TV5”, — PLDT.
“The investment in Sky Cable by Cignal Cable is expected to benefit the former’s existing customer base consisting of over 300,000 cable subscribers and close to 350,000 broadband subscribers as of June 2022,” — PLDT.
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