The Privatization and Management Office (PMO) said CLSA won the open bidding for the contract as the common advisor that would package RPN-9 and IBC -13 and prepare them for eventual sale.
PMO chief privatization officer Jose A. R. Bengzon III said the bids and awards committee of the PMO picked CLSA following its evaluation of the technical and financial proposals.
Bengzon said CLSA was selected since it has an extensive media investment banking experience in Asia, completing 36 media transactions worth over $3 billion.
Bengzon said CLSA would be the common advisor for RPN-9 and IBC-13 but it would undertake separate valuation. According to Bengzon, government shares in each television stations will be sold separately.
"The targeted privatization schedule is set between March and May 2006," he said.
The PMO earlier approved a P6-million budget for the contract as the government embarks on another attempt to sell the television stations after several failed attempts.
The PMO earlier picked CLSA Exchange Capital as financial advisor for RPN-9 but decided to rebid the contract in order to hire a common advisor for both properties.
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 (PCGG) and then it was valued at P2 billion by the defunct Asset Privatization Fund and 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 centers in the Visayas and Mindanao. The network also operated 13 radio stations strategically located 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 was expected to generate additional revenues for the government but legal encumbrances and opposition from various interest groups have continued to hamper the sale of government assets.