SKY CABLE CORP TO BORROW P2 BILLION TO FINANCE PURCHASE OF DESTINY CABLE!

MANILA, Philippines - Sky Cable Corp. on Monday said it would borrow money to finance the acquisition of Destiny Cable Inc. and its two affiliates.To finance the P3.5 billion acquisition, Valdueza said Sky will try to raise P2 billion in debt and P1.5 billion from equity fund raising.

In a disclosure to the Philippine Stock Exchange, ABS-CBN Corp., the parent company of Sky Cable, said it will use both equity and borrowed funds to finance the purchase of the assets of Destiny Cable, Solid Broadband Corp. and Uni-Cable TV Inc.  for P3.5 billion.


Under the asset purchase agreement, Sky Cable, a subsidiary of Sky Vision Corp., will purchase all Destiny Cable assets for P2.4 billion.

The Lopez-owned Sky Cable also will acquire Solid Broadband for P1 billion and Uni-Cable for P93.6 million.

In a separate disclosure, Solid Group Inc. said the sale of its cable TV and broadband Internet assets would allow the company to focus on its evolving new businesses in the fields of wireless digital devices and technologies and other projects. The Solid Group also manufacturers and markets the myPhone brand of mobile phones.

"Its existing broadband/Internet subscribers will also be in a position to enjoy enhanced services from Sky Cable. The parties have also agreed to implement procedures to guarantee a smooth transition and address the concerns of customers, suppliers, and employees for benefit of all the parties concerned," Solid Group said.

SOURCE