PLDT to buy Sky Cable’s broadband biz for ₱6.75B

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Metro Manila (CNN Philippines, March 16) — Telco titan PLDT is set to further strengthen its position in the broadband market as it struck a deal to acquire the broadband business of Sky Cable for ₱6.75 billion.

The Pangilinan-led company announced Thursday that it inked a sale and purchase agreement with Sky Vision Corporation, ABS-CBN Corporation, and Lopez, Inc. for its proposed takeover of Sky’s broadband business and its related assets.

Under the deal, PLDT would acquire Sky’s shares totaling 1.37 billion, priced at ₱4.9043 apiece.

PLDT said in the disclosure that pursuing this transaction was in line with its target “to narrow the digital divide by expanding broadband connectivity,” as well as beef up the government’s digital push.

“The proposed transaction is expected to benefit the existing broadband subscribers of both PLDT and Sky,” the group said, noting the move would boost the coverage, especially in remote areas.

The deal, however, would also require that Sky cease the operations of its pay TV and cable businesses.

In a separate filing, media giant ABS-CBN said that while awaiting the regulatory approvals, Sky’s broadband and cable TV services would continue.

“Once approvals are obtained, Sky Cable is committed to working with all its cable TV subscribers to ensure a transition to their preferred service,” it said.

ABS-CBN considers this move a “strategic decision” for Sky to remain competitive in the market.

“The proceeds from the sale of the shares of ABS-CBN and the settlement of Sky Vision's obligations to ABS-CBN will be used by ABS-CBN to settle and fund its retirement obligations. The sale of the company's ownership in Sky will also allow ABS-CBN to focus its resources on content creation,” ABS-CBN said.