PLDT, one of the biggest telcos in the Philippines, is set to acquire the broadband business of Sky Cable Corporation for Php6.75 billion.
This latest transaction between the two companies involves the acquisition of all of Sky Cable‘s total issued and outstanding capital stock consisting of 1.3 billion of common shares at Php4.90 each.
According to the stock exchange filings submitted last March 16 by PLDT and ABS-CBN (Sky Cable’s major shareholder), the deal also includes the termination of Sky Cable’s paid TV and cable business.
However, ABS-CBN said that the broadband and cable TV services of Sky Cable will continue as they wait for regulatory approvals. Once given the go signal, Sky Cable noted that they are “committed to working with all its cable TV subscribers to ensure a transition to their preferred service.”
This isn’t the first time that PLDT and Sky Cable made a transaction. In 2022, the PLDT-owned Cignal TV attempted to buy 38.88% of Sky Cable for Php2.86 billion, but was scrapped apparently due to political pressure.
As per PLDT, acquiring Sky Cable broadband business would be beneficial for both of their subscribers as it would help expand the coverage of offerings and services.
Sky Cable said that the sale is a “strategic decision” to help maintain its competitiveness.