PLDT Inc., a major telecommunications company in the Philippines, has agreed to purchase the broadband business of Sky Cable Corp. from the Lopez group for P6.75 billion. This move is in line with PLDT’s efforts to expand the country’s broadband connectivity. PLDT announced the proposed acquisition of Sky Cable Corp.’s broadband business and its related assets in a statement on Thursday, March 16, 2023. The deal has already been approved by the boards of PLDT and ABS-CBN Corp., the majority owner of Sky Cable. The transaction, which is subject to regulatory clearance, includes the sale of all of Sky Cable’s 1.38 billion common shares at P4.9043 each.
Upon completion of the deal, Sky Cable will be fully consolidated into PLDT’s financial statement. The companies are expected to leverage each other’s capabilities to grow their subscriber base and improve service. The acquisition is also expected to enhance the overall customer experience through the combined expertise, resources, and capabilities of PLDT and Sky.
The proceeds from the transaction will be used to retire the obligations of Sky Vision and ABS-CBN, and fund the Lopez-led media company’s content creation. ABS-CBN has shifted to digital platforms to air its content after its TV franchise application was denied by the Duterte administration in 2020.
Sky Cable has committed to working with all its cable TV subscribers to ensure a transition to their preferred service once the necessary approvals are obtained. Picasso Buyco Tan Fider & Santos and AlphaPrimus Advisors advised PLDT for this transaction, while the law firms of Romulo Mabanta Buenaventura Sayoc & Delos Angeles and Quiason Makalintal advised the Lopez group.
Prior to this deal, ABS-CBN and TV5 had signed a P4-billion landmark joint venture, but the partnership was called off in September 2022 after facing criticism from certain government officials. The partnership would have allowed the return of ABS-CBN to free TV space. The Lopez-led media company recently shared its possible plans to redevelop its headquarters in Quezon City, and is in talks with several real estate firms, including sister company Rockwell Land.
