and Lopez Holdings Corporation have completed the sale of P2.162 billion Philippine Depositary Receipts (PDRs) over shares in SKYCable Corporation
to a subsidiary of STT Communications Ltd. (STTC), Sampaquita Communications Pte Ltd.
Simultaneously with these transactions, Sampaquita completed its investment in new PDRs covering P1.45B worth of SKYCable PDRs and its subscription to a P250-million convertible note issued by SKYCable. The investment, which amounts to about P3.862B in the aggregate, will give Sampaquita approximately 40% of the economic rights in the cable company. Despite the investment, the Lopez Group maintains almost all voting control and an aggregate economic interest of almost 60% in SKYCable.
“SKYCable will be able to leverage on the technical expertise of STTC and to continue providing its customers with innovative, world-class services as it expands its pay TV and high-speed broadband service offerings,” ABS-CBN chairman Eugenio L. Lopez III
The PDRs are issued by Sky Vision Corporation
, the holding company of SKYCable. They give the holder the right but not the obligation to purchase the underlying SKYCable shares if the holder is qualified under Philippine law to hold SKYCable shares. The PDR holder has no voting rights over the SKYCable shares.
The investment by STTC in SKYCable is a recognition of the achievements of SKYCable in providing high-quality pay TV and communication services to its customers. It also represents a closer relationship between the Philippines’ top broadcasting group and one of Singapore’s leading information communications groups.
ING Bank N.V. acted as financial advisor to SKYCable in the transaction.