Gov’t postpones sale of RPN-9, IBC-13

The sale of the two government-sequestered television networks, RPN-9 and IBC-13, have been shelved in favor of more valuable assets that could be privatized quickly.

Finance officials said efforts to sell the heavily-indebted networks would have to take a backseat to the work being done on other high-yiedling assets such as the government shares in San Miguel Corp. and Manila Electric Co. (Meralco).

Finance undersecretary John Philip Sevilla told reporters that the privatization of RPN-9 and IBC-13 is not likely to yield much anyway.

Earlier, the government’s Privatization and Management Office (PMO) formally awarded to the CLSA Exchange Capital Inc. the contract to serve as lead adviser in the sale of the networks.

"Right now, our efforts are focused on the sale of assets that we consider immediately doable," he said.

Scheduled for bidding were the former site of the Iloilo International Airport and the Al Amanah Islamic Bank, both slated for auction this month, attracting considerable interest from various business interests.

CLSA was hired last year to provide the advisory services for the privatization of both television stations, but the government has yet to make up its mind on whether Channels 9 and 13 would be sold separately.

Under the rules, however, would-be buyers of the television stations must be Filipino-owned since the Constitution required that media outfits be held by Filipinos.

The PMO and the Presidential Commission on Good Government (PCGG) have exposures in RPN 9. The PCCG, on the other hand, has equity in IBC 13.

Both television stations were not profitable, and although very little was expected from their sale, the disposition of the networks would ease some of the financial burden on the government.