Section 12Sec./Art. 12

Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. -The grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, partnership, corporation, or other commercial or legal entity, nor merge with any person, firm, company, partnership or corporation organized for the same purpose without prior approval of the Congress of the Philippines. Congress shall be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise or the rights and privileges acquired thereunder, or of the merger or transfer of the controlling interest of the grantee, within sixty (60) days after the completion of the transaction.

Failure to report to Congress such change of ownership shall render the franchiseipso factorevoked. Any person or entity to which this franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.