PLDT to buy out Lopezes from Sky Cable

Pangilinan-led PLDT Inc. is buying out the Lopez family from Sky Cable Corporation.

In a disclosure to the Philippine Stock Exchange on Thursday, PLDT announced it entered into a sale and purchase agreement with three Lopez-led firms—Sky Vision Corporation, ABS-CBN Corporation, and Lopez Inc.—to acquire 100% of Sky Cable’s total 1.38 billion outstanding capital stock for P6.75 billion.

“The closing of the proposed transaction shall be subject to compliance with certain conditions precedent which include, among others, the termination or cessation of operation by Sky of its pay TV and cable businesses, obtaining all applicable government approvals and clearances, obtaining all required consents and corporate actions, and payment of the purchase price,” the telco said.

In 2020, PLDT dropped its bid to acquire Sky Cable, citing antitrust concerns as any deal struck could possibly be overturned by the Philippine Competition Commission moving forward.

In its latest announcement, the telco cited its mission to narrow the “digital divide” by expanding broadband connectivity, and supports the government's push to expand the nation's digital infrastructure as its rationale for the transaction.

PLDT said acquiring Sky Cable will benefit both broadband subscribers of the two companies by “strengthening and expanding the coverage of their offerings and services, particularly in remote areas; and upgrading overall customer experience through the combined expertise, resources, and capabilities of PLDT and Sky.”

In a separate disclosure, ABS-CBN said selling Sky Cable was a “strategic decision resulting from, among other things, the significant capital expenditure requirements of Sky Cable to maintain its competitiveness.”

“The sale of the company's ownership in Sky will allow ABS-CBN to focus its resources on content creation,” ABS-CBN said.

The Lopez-led media company owns 58.7% of Sky Cable. ABS-CBN will receive P4 billion from the sale of its shares in Sky Cable to PLDT.

Meanwhile, PLDT said the acquisition of the cable service provider will result in the full consolidation of Sky Cable in its financial statements.

“The financial condition of PLDT, including its leverage, is not expected to be significantly affected by the proposed acquisition,” the telco said.—AOL, GMA Integrated News