Gov't clears IBC-13 sale before year ends

August 26 2000 (Philippine Daily Inquirer) by Clarissa S. Batino

THE COMMITTEE on Privatization yesterday approved the sale of the government's sale in broadcasting network IBC-13 by year's end to raise at lease P2 billion.

A 25-year franchise already approved by Congress and waiting for President Estrada's signature is expected to boost proceeds from the sale of IBC-13.

The Presidential Commission on Good Government sequestered Intercontinental Broadcasting Corp. from a Marcos associate, the late Roberto Benedicto, giving the government 100 percent control of IBC-13.

IBC-13 was set for privatization three years ago but a Benedicto associate was able to obtain an injunction that derailed the sale.

To push ahead with IBC-13's privatization, the government agreed to place 20 percent of the proceeds in escrow until the courts could rule on the dispute.

Finance Secretary Jose Pardo, concurrent COP chair, said IBC-13, which claims to be the country's No. 3 network, should generate interest from competing broadcasting companies.

Pardo said the sale of the network should help the government meet its goal of raising P22 billion from the privatization of its assets and keep its deficit below P62.5 billion.

The government has already incurred a deficit of P59.7 billion in just seven months.

Metro Pacific Corp. was earlier reported to be among those keen on acquiring the assets of IBC-13.

IBC-13 president and general manager Boots Anson-Roa said the network has hired financial adviser PriceWaterhouseCoopers to determine the value of the network's assets, set a floor price and recommend the best mode of sale.

The study is expected be completed in six weeks, Roa said the P2-billion estimate from the sale of IBC-13 excluded the company's 4.1-hectare lot in Quezon City.

"The value of the COP estimate of P2 billion can be easily enhanced, especially with our franchise," said Roa.

She said the company realized a profit of P37.6 million in June this year and had started to become profitable since late last year.

Pardo said the COP allowed IBC-13 to renew crucial contracts provided that a committee representative be allowed to sit in the board and that PwC monitor the transactions.

Roa said the government could opt to sell the assets lock, stock and barrel.

Another mode is to sell separately the television and radio stations and IBC-13's real estate assets.

Besides IBC-13, another network, RPN-9, was also surrendered by Benedicto in exchange for immunity.