PLDT, Sky fusion moves step closer

With the cancellation of a significant deal between ABS-CBN and TV5, which aimed to merge their respective media resources

Telecoms giant PLDT Inc.’s P6.75billion acquisition of Sky Cable Corp., the broadband business of the Lopez family, is closer to completion after the Philippine Competition Commission, or PCC, approved the transaction.

PLDT and ABS-CBN Corp., the majority owner of the broadband firm, confirmed through separate stock exchange disclosures on Monday that PCC greenlighted the major sale and purchase deal last 19 January.

PLDT entered into a sale and purchase agreement with Skyowners — Vision Corp., ABS-CBN, and Lopez Inc. — in March last year, which covered the acquisition of Sky’s total issued and outstanding capital stock composed of 1.38 billion common shares.

For PLDT, the deal will “narrow the digital divide” by expanding its broadband connectivity. As for ABS-CBN, the proceeds of the transaction will help finance its obligations.

Bayanihan stalls plan

PLDT first announced its plan to acquire Sky in 2020, but the company immediately withdrew its bid due to the “risk of possible divestment” that may arise because of the provisions of the Bayanihan To Recover As One Act or Bayanihan II back then.

The Bayanihan II, which was signed by former President Rodrigo R. Duterte in September 2020, exempted mergers and acquisitions from compulsory notification “with a transaction value of less than P50 billion which are entered into within two years” from the effectivity of the law.

In 2022, PLDT’s Cignal TV made another effort to acquire 38.88 percent of Sky Cable for P2.86 billion.

However, it was canceled due to external political pressures, with the cancellation of a significant deal between ABS-CBN and TV5, which aimed to merge their respective media resources.