PLDT eyes P2.1-B Radius investment

Integrated telecommunications firm PLDT, Inc. plans to invest P2.116 billion to acquire a 34.9 percent equity interest in Radius Telecom, Inc. to boost customer services and market presence.

In a stock exchange report on Wednesday, PLDT announced that its Board of Directors approved the proposed investment, covering subscription to 2,491,516 shares of common stock for P849.28 apiece, last Tuesday.

Radius is owned entirely by Paragon Vertical Corporation, which is a wholly-owned subsidiary of e-Meralco Ventures, Inc. In turn, e-Meralco Ventures Inc. is a wholly-owned subsidiary of Meralco.

However, it noted that the transaction is still subject to due diligence and execution of definitive agreements. PLDT affirmed in the report that it wants to partner with Radius to integrate its solution capabilities and expand its market coverage for enhanced telecommunications and broadband internet services.

Talks affirmed

In a separate disclosure, Manila Electric Company, or Meralco, confirmed being in discussion with PLDT for the proposed transaction. Radius is owned entirely by Paragon Vertical Corporation, which is a wholly-owned subsidiary of e-Meralco Ventures, Inc. In turn, e-Meralco Ventures Inc. is a wholly-owned subsidiary of Meralco.

Radius has fully fiber facilities spanning 150 enterprise buildings and over 200 residential multidwelling units and villages. It holds a congressional telecommunications franchise that gives it authority to establish, install, and operate telecommunications services for commercial purposes and the public good.