The Philippines’ Cignal Cable Corporation is buying a 38.88% stake in former rival, ABS-CBN-linked Sky Cable for Php2.862 billion/US$51.7 million in a deal backed by PLDT subsidiary, ePLDT.
The companies have also agreed to a Php4.388 billion/US$79.3-million debt instrument that gives Cignal Cable the option to acquire additional Sky Cable shares equivalent to 61.12% of Sky Cable’s outstanding capital stock after eight years.
In addition, Cignal Cable will acquire a convertible note issued by Sky Cable with a face value of Php250 million/US$4.5 million and convertible into primary shares of Sky Cable representing about 1.84% of outstanding capital stock.
The total proceeds – Php7.5 billion/US$135.5 million – will be used to repay obligations of ABS-CBN and Sky Vision and to fund ABS-CBN’s investment in TV5.
Taking a strong public service line, the companies said the deal would allow Sky Cable to “expand significantly its coverage, offerings, and services” as well as its broadband reach and capacity “in support of the government’s plan to prioritise the development of the country’s digital infrastructure”.
Sky Cable had about 300,000 cable subscribers and close to 350,000 broadband subscribers at the end of June 2022.
“Cignal Cable believes that its entry into Sky Cable will strengthen and enhance its public services offerings,” the companies said in the announcement.
The announcement highlighted the educational benefits of the new alliance, mentioning Sky Cable’s Knowledge Channel, which provides educational programmes for children, and DepEd Channel, which offered Long-Distance Learning to the Filipino youth during the pandemic in cooperation with the Department of Education.
“Cignal Cable plans to expand the public services programs that will be offered by Sky Cable to assist the Government in providing public services to the Filipinos, particularly in remote areas,” the companies said.
The agreement is expected to close this month.
In an...
The Philippines’ Cignal Cable Corporation is buying a 38.88% stake in former rival, ABS-CBN-linked Sky Cable for Php2.862 billion/US$51.7 million in a deal backed by PLDT subsidiary, ePLDT.
The companies have also agreed to a Php4.388 billion/US$79.3-million debt instrument that gives Cignal Cable the option to acquire additional Sky Cable shares equivalent to 61.12% of Sky Cable’s outstanding capital stock after eight years.
In addition, Cignal Cable will acquire a convertible note issued by Sky Cable with a face value of Php250 million/US$4.5 million and convertible into primary shares of Sky Cable representing about 1.84% of outstanding capital stock.
The total proceeds – Php7.5 billion/US$135.5 million – will be used to repay obligations of ABS-CBN and Sky Vision and to fund ABS-CBN’s investment in TV5.
Taking a strong public service line, the companies said the deal would allow Sky Cable to “expand significantly its coverage, offerings, and services” as well as its broadband reach and capacity “in support of the government’s plan to prioritise the development of the country’s digital infrastructure”.
Sky Cable had about 300,000 cable subscribers and close to 350,000 broadband subscribers at the end of June 2022.
“Cignal Cable believes that its entry into Sky Cable will strengthen and enhance its public services offerings,” the companies said in the announcement.
The announcement highlighted the educational benefits of the new alliance, mentioning Sky Cable’s Knowledge Channel, which provides educational programmes for children, and DepEd Channel, which offered Long-Distance Learning to the Filipino youth during the pandemic in cooperation with the Department of Education.
“Cignal Cable plans to expand the public services programs that will be offered by Sky Cable to assist the Government in providing public services to the Filipinos, particularly in remote areas,” the companies said.
The agreement is expected to close this month.
In an announcement to its subscribers this afternoon, Sky Cable said the new agreement would give Filipinos greater access to broadband internet service.
The platform promised uninterrupted services, including customer service support.