PCC clears PLDT takeover of Sky Cable

MANILA, Philippines  —The P6.75-billion sale of Lopez-led Sky Cable Corp.’s broadband business and other related assets to Manuel Pangilinan-led PLDT Inc. hurdled the competition review, with the transaction drawing nearer to conclusion.

ABS-CBN Corp., the majority owner of the broadband company, said on Monday the Philippine Competition Commission (PCC) had approved the major sale and purchase deal.

“The proposed transaction is, however, still subject to a number of closing conditions,” the listed media company said.

PLDT, meanwhile, said that “until all closing conditions are fulfilled, the proposed transaction will not be implemented.” The PCC, the country’s antitrust agency, studies proposed merger or acquisition to determine if it will prevent, restrict or lessen competition in the market, which is crucial to promoting better services or products for the consumers.

READ: PLDT buying Sky Cable’s broadband business for P6.75B

In this case, the PCC had looked at the impact of the merger on competition in five markets: distribution of fixed broadband services; distribution of pay television services; over-the-top streaming platforms and internet protocol television; content production; and content distribution.

The deal, announced in March last year, involves the sale of all of Sky Cable’s 1.38 billion common shares. Each share is priced at P4.9043, which is based on agreed equity valuation of the Lopez company.

The completion of the transaction will result in full consolidation of Sky Cable in PLDT’s financial statement. Sky Cable will also terminate or cease its pay television and cable businesses.

Funding

The proceeds from the transaction are earmarked to settle the obligations of ABS-CBN and stakeholder Sky Vision Corp.

In addition, the cash receipt will finance the Lopez-led media company’s content creation. ABS-CBN, to recall, has pivoted to digital platforms to air their content after the previous administration shot down its bid to renew TV franchise in 2020.

READ: Sky Cable acquisition to boost PLDT’s broadband footprint

Prior to this, the Lopez group and Pangilinan had planned to join forces in 2022 via P4-billion joint venture between ABS-CBN and TV5 but it was terminated after receiving backlash from certain government officials. TV5’s Cignal Cable Corp. was supposed to invest in Sky Cable as well, but the deal was called off along with the much-anticipated collaboration.

The partnership, if fully realized, would have allowed the return of ABS-CBN to free TV space. The Kapamilya network earlier signed a block time leasing deal with TV5 to show its popular shows and programs. INQ