ABS-CBN confirms investment deal with TV5, where it will acquire 6.46 million common shares of the latter for ₱2.16 billion. This represents 34.99% of the Manny Pangilinan-led TV network's total voting, capital stock.
The Lopez family-led ABS-CBN Corp. announced Thursday that it will acquire 6.46 million shares of Manny Pangilinan's TV5 Network Inc.
In a disclosure to the local bourse, ABS-CBN said the deal involves the acquisition of new common shares of TV5, representing 34.99% of its total voting and outstanding capital stock, for ₱2.16 billion.
MediaQuest Holdings remains the majority shareholder of TV5, even with the transaction reducing its stake in the network to 64.79%.
“This transaction is clearly transformational for both companies and is envisaged to significantly enhance significantly TV5’s capability to deliver content and coverage to the Filipino public in the areas of entertainment, news, sports and public services,” said ABS-CBN of the deal, which is expected to be completed this August.
ABS-CBN revealed both companies will execute a convertible note agreement, which involves conversion into additional 5.5 million common shares of TV5 eight years from its issuance. By then, ABS-CBN will own 49.92% of TV5’s outstanding capital stock.
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