Sky Vision managing director Carlos Tria told The STAR that in addition to the 33.5-percent stake currently held by the Lopez group (owners of Sky Cable) that will be offered to new investors, new primary shares will be issued and sold the proceeds of which will go to the merged company.
At present, the Lopez group controls two-thirds of Beyond Cable while the PLDT group which owns Home Cable has the remaining third. In order for the two groups to have an equal interest in the new company, the Lopezes will be selling half of its shareholdings to a third party.
"When the Benpres-Lopez group sells half of its shares in the combined Sky Cable-Home Cable, the proceeds will go to them. But when primary shares are offered, the money will go to the new company. As to what percentage the primary shares will be as well as the dilution the present owners are willing to take, we do not know yet," Tria said.
They expect new investors to come in first half of n ext year and initial exploratory talks are now going on with prospective investors, both foreign and local. "We have had preliminary discussions," he said.
Sky Vision controls Sky Cable, which currently has the biggest share of the Philippine cable market. The combined Sky-Home, on the other hand, controls 70 percent of the market.
Right now, the merged Sky-Home has an estimated value of P14.5 billion. The group is currently preparing a business plan for presentation to new investors which will serve as basis for the new valuation of the company. Tria said they will probably use the discounted cash flow (DCF) method which looks at future income as well as other methods in making the new valuation.
Bear Stearns and ING Baring have been tapped to serve as financial advisers for talks with prospective investors. A consortium of investment bankers including UCPB, Equitable, and PCI Capital has been tasked to deal with the banks for a possible restructuring of some P3.5 billion in a combined debts of Sky and Home.
Sky and Home have secured a 90-day postponement of the payment of principal due for payment in September and October.
For many years now, the two companies have been in the red due to escalating costs of programming brought about primarily by the peso devaluation as well as increased prices of programmers.
Two sets of business plans are being prepared. The first one – the debt model – has been finished and has reportedly been presented to the creditors while the second one or the investor model will follow.