PLDT, one of the major telcos in the Philippines, is set to buy the ABS-CBN-led broadband company Sky Cable for 6.75 billion Pesos. This deal will further expand PLDT's broadband connectivity.
In a disclosure to the Philippine Stock Exchange (PSE), PLDT said it inked a sale and purchase agreement with Sky Vision Corporation, ABS-CBN Corporation, and Lopez, Inc. for the proposed acquisition of Sky Cable's broadband business (Sky Fiber). Through this deal, PLDT will also cover the entirety of the company's total outstanding and issued capital stock.
Under the terms of the agreement, Sky Cable must end the operation of its pay TV and cable businesses.
According to PLDT, the transaction supports its goal of bolstering the country's broadband connectivity, and the acquisition of Sky Cable will allow the company to expand its coverage to more areas.
Moreover, the proposed transaction is expected to benefit both PLDT and Sky's existing broadband customers, as per PLDT.
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In a separate announcement, ABS-CBN stated that Sky would continue to operate internet broadband and cable TV services while awaiting the necessary regulatory approvals.
ABS-CBN also referred to this as a "strategic decision," citing the "significant" capital Sky Cable requires to remain competitive.
The media company also added that selling Sky Cable will allow them "to focus its resources on content creation."
Via GMA News
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