MANILA - ABS-CBN Corp and TV5 Network Inc on Thursday announced the termination of their proposed investment deal where the Lopez-led firm was supposed to acquire 34.99 percent in TV5.
"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 10 August 2022 covering the proposed acquisition by ABS-CBN of 34.99 percent equity interest in TV5," ABS-CBN told the stock exchange.
Also terminated was the Convertible Note Agreement covering the proposed subscription by ABS-CBN to a Convertible Note to be issued by TV5, ABS-CBN said.
"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 statement said, which was also disclosed to the Securities and Exchange Commission.
In a separate disclosure, Sky Vision Corp, Lopez Inc and Cignal Cable Corp said they have also "mutually agreed" to terminate the Sale and Purchase Agreement covering the proposed acquisition by Cignal Cable of 38.88 percent equity interest in Sky Cable Corp.
The Debt Instruments Agreement covering the proposed subscription by Cignal Cable to an Exchangeable Debt Instrument to be issued by Sky Vision and the proposed acquisition by Cignal Cable of a Convertible Note issued by Sky Cable was also terminated.
The deal was earlier paused to enable concerned firms to address issues raised by several lawmakers.
A probe was launched by the House of Representatives to determine whether there are laws violated by the deal.
During the House inquiry, the Securities and Exchange Commission said the deal does not qualify as a merger.
But the National Telecommunications said both ABS-CBN and TV5 must secure clearances from concerned government agencies before they can proceed with the deal.
Meanwhile, Albay Rep. Edcel Lagman said the House investigation of the investment deal could result in "derogation of press freedom and free speech."
ABS-CBN Holdings Corp and ABS-CBN Corp have requested for a one-hour voluntary trading halt after the termination of the investment deal was announced.