NTC okays SkyCable-Destiny Cable deal
MANILA, Philippines - SkyCable Corp, a unit of broadcast giant ABS-CBN Corp., has been given the green light by the state-run National Telecommunications Commission (NTC) to acquire the assets of Destiny Cable Inc. of the Solid Group of businesswoman Elena Lim.
In an order signed by NTC commissioner Gamaliel Cordoba and deputy commissioners Carlo Jose Martinez and Delilah Deles, the regulator approved last week the deed of sale and assignment signed by SkyCable and Destiny Cable last May 11.
“Wherefore, it appearing to the satisfaction of the commission that petitioners have substantiated the merits of application, the commission hereby approves the deed of sale and assignment executed on May 11, 2012 by Destiny Cable in favor of SkyCable, subject to the existing pertinent rules, as well as rules and regulations of the commission,” the order dated Dec.18 stated.
In the middle of the year, SkyCable announced the P3.5-billion sale and transfer deal inked with the cable TV, broadband Internet and direct-to-home pay-TV units of the Solid Group of the Lim family.
Under the deed of sale and assignment, SkyCable agreed to acquire Destiny Cable for a total consideration of P1.22 billion. The Lopez-controlled company also agreed to acquire Solid Broadband and Uni-Cable.
This provided Destiny Cable subscribers with the benefits of digital cable technology that is already being utilized by SkyCable.
Data showed that SkyCable has an authorized capital of P900 million while its total liabilities and stockholders’ equity stood at P8.28 billion. The company’s liabilities amounted to P3.23 billion while stockholders’ equity stood at P5.05 billion.
In its petition for approval of the sale transaction, Destiny Cable and SkyCable pointed out that subscribers could access more channels, avail of various services through digital cable technology, and clearer signal.
“Applicant has met all the requirements imposed by the commission in so far as the approval of the deed of sale, assignment and transfer of assets, licenses and permits of an existing cable television systems and that petitioner-vendee is financially capable of assuming the herein cable television stations being sought for,” Cordoba said.
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