Privatization Council okays sale of RPN-9, IBC-13

The National Government’s Privatization Council has decided to jointly sell its two state-owned television networks – Radio Philippine Network (RPN-9) and Intercontinental Broadcasting Corp. (IBC-13), Finance Undersecretary Jay Singson said yesterday.

Singson said with this decision, they would rebid the financial advisory contract of RPN-9 which was previously awarded to CLSA Exchange Capital.

"The Privatization Council felt that IBC-13 is also ready for privatization so we might as well sell the two television networks together," Singson said.

According to Singson, they would not have a problem rebidding the financial advisory contract. "The CLSA has agreed to bid the contract again," he said.

Singson said they would be bidding out the contract for the financial advisor within the year but the actual sale of the two television firms would likely take place next year.

The financial advisor, he said, would determine the sale structure for RPN-9 and IBC-13.

Singson admitted though that there are still some issues that need to be resolved before the privatization process of the television firms pushes through.

"We need to address the issue of franchise. We need to know how this franchise could be transferred to the new buyer," he said.

Last month, the government has chosen CLSA Exchange Capital to become the financial advisor for the privatization of RPN-9.

The National Government is bent on divesting its shareholdings in RPN-9 as part of its overall privatization efforts.

RPN-9 operates six TV stations in six cities, TV relay and translator stations in Baguio and in 12 other population centers in the Visayas and Mindanao, and 13 radio stations strategically spread out all over the country.

Government interest in RPN-9 includes equity, plus the license to operate a free TV station, physical assets and receivables.

RPN-9’s impending privatization is part of the government’s thrust to veer away from competing in areas that are best and already adequately served by the private sector.

A number of investors have indicated interest in bidding for the government shares in RPN-9.