PDRs are equity instruments that transfer economic rights over an asset, such as dividends, without transferring voting interest.
ABS-CBN Corp. and Lopez Holdings Corp. sold P2.16 billion Sky Cable PDRs to STTC. STTC also bought new PDRs worth P1.45 billion as well as a P250-million convertible bond issued by Sky Cable.
The investment, which totaled P3.86 billion, gave STTC a 40% economic interest in Sky Cable.
The Lopez group said it will retain 60% economic interest and all voting control over Sky Cable.
ABS-CBN chairman Eugenio Lopez III said the transaction represents a closer relationship between the country's largest multimedia conglomerate and Singapore's leading information communications group.
"Sky Cable will be able to leverage on the technical expertise of STTC and continue providing its customers with innovative and world-class services, as it expands its Pay TV and high-speed broadband service offerings," he noted.
