PCC Approves the Sale of the Lopez Family’s Broadband Business
Despite receiving PCC approval, the sale of the Sky broadband business is not yet final as it is subject to certain closing conditions.
The sale of the broadband business under Sky Cable, which is owned by the Lopez Family’s ABS-CBN Corp., has received approval from the Philippine Competition Commission (PCC). ABS-CBN is in the process of selling the Sky broadband business to PLDT Inc., which is led by Manny Pangilinan.
It was revealed last year that ABS-CBN and PLDT entered a sale and purchase agreement. In this agreement, PLDT agreed to purchase 100% of Sky Cable’s 1.38 billion outstanding capital stock. This is reported to be worth PHP6.75 billion.
This is already PLDT’s third attempt to acquire Sky Cable. The first attempt was made in 2020, while the second was made in 2022. Both attempts failed to materialize due to antitrust issues surrounding the deal.
What Happens to Sky Cable’s Cable and Pay TV Services?
It should be noted that the deal only involves the Sky broadband business. It does not cover the company’s cable and pay TV services.
This is because these services will eventually be shut down in preparation for the sale.
“Once the approval of the PCC is obtained, the sellers will continue to work on the other closing conditions which include, among others, the termination or cessation of Sky’s pay TV and cable businesses, obtaining all other applicable government approvals and clearances, and obtaining all required consents and corporate actions,” PLDT said in a statement.
Where the Deal Goes from Here
While receiving the approval of PCC is undoubtedly a step closer to finalizing the sale of Sky Cable, the deal is still not finalized and completed.
As the sellers, ABS-CBN is still in the process of meeting closing conditions required for the deal. The deal is also subject to the approval of other government agencies.
Sky Cable has assured its customers that it will continue to offer its services while awaiting the required approvals for the deal.
“While awaiting the required regulatory approvals, we assure you that SKY’s broadband and cable TV services will continue,” the company said in a statement. “Once approvals are obtained, SKY is committed to assisting all its cable TV subscribers to ensure a transition to their preferred service.”