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MVP confirms PLDT’s withdrawal of offer to buy Sky Cable

Telco magnate Manny V. Pangilinan confirmed PLDT Inc.’s withdrawal of its offer to acquire the cable business of the Lopez family.

“We have withdrawn from the bidding process for Sky Cable … Upon review of Bayanihan Act 2, the PCC [Philippine Competition Commission] has the ability to review merger and acquisitions one year after the effectivity of the act and possibly reverse agreements. That’s the main reason,” Pangilinan said in a virtual briefing.

READ: Lopezes asking for the moon? MVP drops Sky Cable bid as PLDT, Cignal execs see no point in buying rival at high price

Under the law, business mergers or acquisition agreements may not be consummated without the approval of the PCC.

READ: Perfect fit: MVP confirms BILYONARYO story PLDT keen on SkyCable

The PCC may reject transactions that prevent, restrict or lessen market competition.

READ: Going for broke: MVP-Salim group dives into bidding war for Sky Cable, eyes Bayanihan exemption from anti-competition scrutiny

The PLDT Group operates direct-broadcast satellite TV provider Cignal TV, which competes with Sky Cable.

READ: Lopezes put Sky Cable up for sale: Dennis Anthony Uy, Dennis Uy, Ayalas to square off

Pangilinan was earlier warned by the group’s top executives that the proposed deal might face tight scrutiny by the PCC one year after the Bayanihan 2 Law’s effectivity.

READ: Lopez Group says no decision to sell cable unit

Sky Cable currently has nearly 300,000 broadband subscribers and more than 500,000 cable users.

READ: Congressman claims MVP buying Sky Cable to kill Cignal TV’s rival

Aside from PLDT, other groups that signified interest in Sky Cable were Converge ICT’s Denni Anthony Uy, DITO Telecommunity’s Dennis Uy and the Ayala Group.

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