MANILA, PHILIPPINES – Media giant ABS-CBN announced on September 01 the termination of the Investment Agreement between ABS-CBN Corporation and TV5 Network, Inc. The official release stated that both parties have not implemented any of the transactions covering the Implementation Agreement and the Convertible Note Agreement.
The statement reads: “In a separate disclosure, TV5 Network, Inc. (TV5) and ABS-CBN Corporation (ABS-CBN) also announced that they have mutually agreed to terminate the Investment Agreement dated August 10, 2022 covering the proposed acquisition by ABS-CBN of 34.99% equity interest in TV5 and the Convertible Note Agreement dated August 10, 2022 covering the proposed subscription by ABS-CBN to a Convertible Note to be issued by TV5. The termination was also formalized through a Memorandum of Agreement. The Parties confirmed that they have not implemented any of the transactions covered by the Investment Agreement and the Convertible Note Agreement.”
The deal, which was announced on August 11, was an agreement for the former to own a minority interest in TV5. ABS-CBN was set to acquire 6,459,393 primary common shares in TV5, which adds up to 35% of the network’s stock, amounting to PHP 2.16 billion.
On August 24, the two media giants announced that they will be delaying the closing of the agreement. In a statement released by ABS-CBN, the network cited concerns about the pending partnership raised by legislators and National Telecommunications Commission (NTC).
JUST IN: ABS-CBN-TV5 and Cignal-Sky Cable have mutually agreed to terminate their investment deal.
Read the official statement of ABS-CBN.
More details on https://t.co/pCyTuluM8U. pic.twitter.com/uZSfVErpBW
— ABS-CBN News (@ABSCBNNews) September 1, 2022
