L-R: PLDT and Smart president and CEO Al Panlilio, MediaQuest Holdings president and CEO Jane Basas, MediaQuest Holdings chairman Manuel Pangilinan, ABS-CBN chairman Mark Lopez, ABS-CBN president and CEO Carlo L. Katigbak and ABS-CBN chief partnership officer Bobby BarreiroABS-CBN Corporation and TV5 Network Inc. announced on Aug. 11 the execution of an investment agreement that will allow ABS-CBN to acquire 6,459,393 primary (new) common shares in TV5 representing 34.99% of the total voting and outstanding capital stock of TV5 for an aggregate subscription price of P2.16 billion.

After the consummation of this subscription, the MediaQuest group’s equity in TV5 will be reduced to 64.79% of the voting and outstanding capital stock and it will remain as the controlling shareholder of TV5.

Simultaneously with the execution of the investment agreement, the parties will execute a convertible note agreement pursuant to which ABS-CBN will invest in a convertible note with a face value of P1.84 billion to be issued by TV5. The convertible note will allow ABS-CBN, subject to obtaining applicable regulatory approvals, to acquire additional primary common shares of TV5 after eight years from the issuance of the convertible note, and thereby increase its equity in TV5 to no more than 49.92% of the outstanding capital stock of TV5.

The proceeds of the subscription in the primary common shares and the convertible note in the total amount of P4 billion will fund the capital expenditures and operating expenses of TV5 in pursuing the enhancements of its content and programming and public service offerings.

Manuel Pangilinan, chairman of MediaQuest Holdings, said: “We welcome the entry and investment of ABS-CBN in TV5, as ABS-CBN has always been the leading developer and provider of Filipino-related entertainment content not only in the Philippines but overseas as well. Our companies have always had these cherished values of providing top and quality programs in the service of the Filipino people and together we believe we can achieve this in greater measure and success.”

Mark Lopez, chairman of ABS-CBN, said: “We are excited with this partnership as we see the opportunity to help TV5 grow and strengthen its free-to-air network. For ABS, it presents a fantastic platform for us to achieve synergies in production content and talent management as well as maximizing our content delivery. We look forward to be of greater service to the public as we come together in taking TV5 to the next level.”

Carlo L. Katigbak, president and CEO of ABS-CBN, added: “This partnership is consistent with the strategic intention of ABS-CBN to evolve into a storytelling company whose goal is to reach as wide an audience as possible. In partnership with TV5, we look forward to reaching viewers both on owned platforms and through other broadcast partners, thereby enriching the Philippine creative industry. We hope the industry evolves from being highly competitive to increasingly collaborative, which benefits all stakeholders in the long run.”

This transaction is clearly transformational for both companies and is envisaged to significantly enhance significantly TV5’s capability to deliver content and coverage to the Filipino public in the areas of entertainment, news, sports and public services.

This is also consistent with the national policy of expanding the private sector’s role of supporting efficient and reliable public services, which TV5 is expected to provide through its nationwide network to provide increased nationwide coverage, especially in remote areas.

The transaction is expected to be completed within August 2022, and closing is subject to fulfillment of certain closing conditions.