ABS CBN Corporation and TV5 Network Inc announce the termination of the “Convertible Note Agreement”

ABS CBN Corporation and TV5 Network Inc announce the termination of the “Convertible Note Agreement”

MANILA, 2022 Sep 1 — Listed media conglomerate ABS-CBN Corp. will no longer buy a third of TV5 Network Inc. with the termination of the two companies’ investment agreement, according to its disclosure to the local stock exchange on Thursday.

In a statement, both media companies also announced the termination of the Convertible Note Agreement dated August 10, 2022, which involves the Lopez-led broadcast giant purchasing 35% of Manny Pangilinan’s network. The deal was first announced on Aug. 11.

The convertible note agreement would have granted ABS-CBN an additional 5.5 million common TV5 shares eight years from its issuance, making ABS-CBN the owner of nearly half or 49.92% of TV5 then.

“The Parties confirmed that they have not implemented any of the transactions covered by the Investment Agreement and the Convertible Note Agreement,” read the disclosure.

Pangilinan-led Cignal Cable’s acquisition of 39% of Sky Cable will not continue as well with the termination of its sale and purchase agreement with ABS-CBN, Lopez Inc. and Sky Vision Crop.

Over a week ago, the TV networks announced a pause in their investment deal to address issues raised by lawmakers and the National Telecommunications Commission.

House panels have probed into the supposed acquisition, along with issues like the alleged foreign ownership of TV5 and block time deal between companies.

However, bills have also been filed in the House seeking a fresh franchise for ABS-CBN.

ABS-CBN went off the air in May 2020 after the National Telecommunications Commission issued a cease-and-desist order against it.

Since then, it has operated without a franchise, relying on block time deals with TV5 and Zoe TV.

/ FWH Admin