In a press briefing, ABS-CBN Corporation chief financing officer Rolando Valdueza said ABS-CBN and Lopez Holdings Corporation have completed the sale of P2.16 billion worth of Philippine Depositary Receipts (PDRs) over shares in Sky Cable to Sampaquita.
He said the proceeds of the sale have already been booked by ABS-CBN last March 30, 2011 although the disclosure was made only on May 12, 2011.
Simultaneously with these transactions, Sampaquita completed its investment in new PDRs covering P1.45 billion worth of Sky Cable PDRs and its subscription to a P250-million convertible note issued by Sky Cable.
The investment will give Sampaquita approximately 40 percent of the economic rights in the cable company. Despite the investment, Lopez Group maintains 99 percent voting control and an aggregate economic interest of almost 60 percent in Sky Cable.
ABS-CBN Chairman Eugenio Lopez III highlighted the benefits of the investment by STTC in Sky Cable, “Sky Cable 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.”
The PDRs are issued by Sky Vision Corporation, the holding company of Sky Cable and a member of the Lopez group of companies. The PDR holder has no voting rights over the Sky Cable shares.
The PDRs give the holder thereof the right but not the obligation to purchase the underlying Sky Cable shares provided that the holder is qualified under Philippine law to hold Sky Cable shares.
The convertible notes issued by Sky Cable is convertible into Sky Cable shares provided that the holder of the Convertible Notes is qualified to own the Sky Cable shares.
ABS-CBN said the investment by STTC in Sky Cable is an important recognition of the achievements of Sky Cable to-date in providing high quality Pay TV and communication services to its customers and reflects the confidence in the potential of Sky Cable.
For ABS-CBN, it would represent a closer relationship between the Philippines' top broadcasting group and one of Singapore's leading information communications group.
