PHILIPPINE LONG DISTANCE TELEPHONE Corp. is selling its communications satellite subsidiary Mabuhay Satellite Corp. (MSC) to Bermuda-based regional satellite operator Asia Broadcast Holdings Ltd.

In a disclosure to the Philippine Stock Exchange Friday, PLDT said its 67-percent-owned subsidiary MSC had signed several agreements with ABS involving the sale to the latter of “substantially all” of its business subject to the required regulatory approvals in the U.S.

The transactions involve the wholesale lease by ABS, which is led by Citigroup Venture Capital International (CVCI), of the Agila-2 satellite from MSC and upon the satisfaction of various conditions, the purchase by ABS of the business of MSC.

But until such time that the conditions are met—including the conduct of satisfactory due diligence audit apart from government approvals—MSC under its current president Gabriel Pimentel will continue to operate and manage the business on behalf of ABS under an operations and management agreement.

MSC’s Agila-2 satellite is a space systems spacecraft launched in August 1997 with transponders or communication satellite channels covering Asia from India to the Philippines, Japan to Indonesia and a satellite spot beam over Hawaii to provide connectivity to the U.S. It also has channels covering the region providing capacity for television distribution, direct-to-home broadcasting and VSAT (Very Small Aperture Terminal).

“ABS, while one of the youngest satellite operators in Asia, has been very progressive with its recent procurement of the ABS-1A and ABS-2 satellites as part of its fleet’s expansion. We are happy with this acquisition, which leverages the satellite operations capabilities developed through the years by Mabuhay Satellite,” Pimentel said.

“This will not only ensure future continuity of Mabuhay’s Subic Space Center but will thrust it into growth as this facility is further expanded to support ABS’ growing satellite operations needs,” Pimentel said.