PLDT purchases minority stake in Radius Telecoms

PLDT Inc. has acquired a minority stake in Radius Telecoms Inc. for P2.116 billion, a move that is seen to yield cost efficiencies through infrastructure sharing and co-building in key areas.

According to a disclosure to the stock exchange, PLDT is set to subscribe to 2.491 million shares of common stock in radius at a price of P849.28 per share, bringing the total investment to about P2.116 billion.

“By leveraging on the existing infrastructure and co-building in key areas, both PLDT and radius stand to gain cost efficiencies. This potential partnership will strengthen the market presence of PLDT and radius and unlock synergies in solution capabilities and network coverage to better serve and improve quality of service to PLDT and radius customers across the country,” the disclosure read.

The closing of this transaction is contingent upon several factors, including the successful completion of a due diligence review, procurement of necessary internal corporate and regulatory approvals, and the finalization of definitive agreements.

radius Telecoms, known for its 100-percent fiber optic network, provides coverage across the Philippines, encompassing 150 enterprise buildings, over 200 residential units, and more than 200 villages.

A subsidiary of Paragon Vertical Corp., itself a part of the manila electric Co. (meralco), radius holds a congressional telecommunications franchise.

PLDT has a substantial presence in both home and enterprise sectors. As of end-september 2023, PLDT has a total fiber footprint exceeding 1.1 million cable kilometers. This includes over 0.2 million cable kilometers of international fiber and approximately 0.9 million cable kilometers of domestic fiber.

The reach of PLDT’S high-speed internet has extended to more than 17.3 million homes in 69 percent of the country’s municipalities and towns. moreover, PLDT now boasts a total of 6.15 million fiber ports, covering over 18,000 barangays nationwide.

PLDT saw profits inch up by 1 percent to P27.88 billion in January to September 2023 from P27.50 billion, while telco core income reached P26.1 billion, a 2-percent increase from P25.6 billion.