Government to try to sell RPN-9, IBC-13 anew

The government will embark on another attempt to sell Radio Philippines Network (RPN-9) and Intercontinental Broadcasting Corp. (IBC-13) by opening the search for a financial advisor to explore financial options and package the assets for sale.

The Privatization and Management Office (PMO) said a P6-million budget has been approved for the contract and the office was preparing the short list of eligible advisors.

According to Crisanta Legaspi, deputy privatization officer and chairman of the PMO-Bids and Awards Committee, the interested bidders were given until Nov. 30 to submit their letters of intent (LOIs).

Legaspi said the PMO would make the short list based on general experience, privatization experience, qualification of personnel, current workload of personnel, and their dealings with the government.

To qualify, Legazpi said prospective bidders should at least be 60-percent owned by Filipino nationals.

The government has been trying to sell RPN-9 and IBC-13, but Legazpi said the ultimate decision of the PMO was for a joint sale.

The PMO earlier picked CLSA Exchange Capital as financial advisor for RPN-9 but decided to rebid the contract for the joint sale of both television networks.

Records indicated that there were three floating valuations for RPN-9 alone. The asset was earlier valued at P1.3 billion by the Presidential Commission on Good Government and then it was valued at P2 billion by the defunct Asset Privatization Fund and then at P2.4 billion by the RPN-9 board.

Government’s 72.4-percent ownership of RPN-9 was combined from the PCGG’s sequestration in 1986 from a company allegedly owned by the late President Ferdinand Marcos and the shares surrendered by businessman Roberto Benedicto, a Marcos associate.

RPN-9 operated six television networks in six cities, TV relay and translator stations in Baguio City and in 12 other population centers in the Visayas and Mindanao. The network also operated 13 radio stations strategically spread all over the country.

IBC-13, on the other hand, was sequestered also in 1986, including its 41,000-square-meter lot at Broadcast City in Quezon City, lands and buildings in the provinces, five television stations as well as nine radio stations.

Privatization is expected to generate additional revenues for the government, but legal encumbrances and opposition from various interest groups have continue to plague the sale of government assets.