PLDT buys Lopez’s Sky Cable broadband business for P6.75B
MANILA, Philippines – Telecommunications giant PLDT Inc. has entered into an agreement to buy the broadband business of Sky Cable Corp. from the Lopez group for P6.75 billion, in keeping with the Manuel V. Pangilinan-led company’s mission to expand the country’s broadband connectivity.
In a statement on Thursday, PLDT Inc. announced its proposed acquisition of the Sky Cable Corp.’s broadband business and its related assets as the telco giant gears up to aggressively expand its network amid the increasing connectivity needs due to digitalization.
The boards of PLDT and ABS-CBN Corp.—the majority owner of Sky Cable—already approved the deal, which remains subject to regulatory clearances. The transaction involves the sale of all of Sky Cable’s 1.38 billion common shares at P4.9043 each.
The completion of the deal will result in full consolidation of Sky into PLDT’s financial statement.
“Both companies may be able to leverage on each one’s respective capabilities in order to grow subscriber base and improve service,” Regina Capital Development Corp. head of sales Luis Limlingan told the Inquirer.
The deal is seen to upgrade the “overall customer experience through the combined expertise, resources and capabilities of PLDT and Sky,” the Pangilinan-led company said.
The proceeds from the transaction are being allocated to retire the obligations of Sky Vision and ABS-CBN.
In addition, the cash receipt will fund the Lopez-led media company’s content creation.
ABS-CBN, to recall, has pivoted to digital platforms to air their content after the Duterte administration shot down its application to renew its TV franchise in 2020.
“Once approvals are obtained, Sky Cable is committed to working with all its cable TV subscribers to ensure a transition to their preferred service,” ABS-CBN said.
For this transaction, Picasso Buyco Tan Fider & Santos and AlphaPrimus Advisors advised PLDT while the law firms of Romulo Mabanta Buenaventura Sayoc & Delos Angeles and Quiason Makalintal advised the Lopez group.
Prior to this, ABS-CBN and TV5 inked a P4-billion landmark joint venture but they backpedaled on their partnership in September last year after facing criticism from certain government officials. TV5’s Cignal Cable Corp. was supposed to invest in Sky Cable as well, but the deal was called off along with the much-anticipated collaboration.
The partnership, if fully realized, would have allowed the return of ABS-CBN to free TV space. The Kapamilya network earlier signed a block time leasing deal with TV5 to show its popular shows and programs.
The Lopez-led media company recently shared its possible plans to redevelop its headquarters in Quezon City. It is in talks with several real estate firms, including sister company Rockwell Land.
Fear of rejection by antimonopoly body pushes PLDT to drop SkyCable bid
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