ABS-CBN has confirmed that it has signed an 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 voting, capital stock.
The deal is expected to give ABS-CBN programs more airtime in the Kapatid network.
ABS-CBN said it will subscribe to a convertible note to be issued by TV5 for ₱1.84 billion.
“The proceeds of the subscription in the primary common shares and the Convertible Note will fund the capital expenditures and operating expenses of TV5 in pursuing the enhancements of its content and programming and public service offerings,” the network said in a statement.
“This is clearly transactional for both companies and will significantly enhance TV 5’s capability to deliver content and coverage to the public in areas of entertainment, news, sports and public service,” the company said.
Subject to regulatory approvals, it involves conversion into additional 5.5M common TV5 shares 8 years from issuance. By then, ABS-CBN will own 49.92% of TV5’s capital stock.
