Antitrust review stalls PLDT buyout of Sky Cable

MANILA, Philippines — Telco giant PLDT Inc. has yet to complete its nearly P7-billion deal to acquire Lopez-led Sky Cable Corp. as the parties still have to secure regulatory approval to proceed with the transaction.

In a disclosure to the Philippine Stock Exchange, PLDT denied an online report claiming it is now moving to integrate Sky Cable into the business.

On the contrary, PLDT said the Philippine Competition Commission (PCC) has yet to conclude the antitrust review for its proposed acquisition of Sky Cable for P6.75 billion.

PLDT also noted that it is steps away from integrating its operations with Sky Cable. For one, Sky Cable has to discontinue its cable segment for the buyout to materialize, a process that in itself requires approval from state agencies.

To recall, PLDT signed a sale and purchase agreement with ABS-CBN Corp., Sky Vision Corp. and Lopez Inc. last year. If approved, the telco led by Manuel V. Pangilinan will buy 100 percent of the total issued and outstanding capital stock of Sky Cable for P6.75 billion.

“Once the approval of the PCC is obtained, the sellers will continue to work on the other closing conditions which include, among others, the termination or cessation of Sky’s pay TV and cable businesses, obtaining all other applicable government approvals and clearances, and obtaining all required consents and corporate actions,” PLDT said.

“Obtaining closing conditions is necessary for the implementation of the proposed transactions,” the telco said.

PLDT decided to acquire Sky Cable as part of its commitment to bridge the digital divide in the Philippines.

For PLDT, the acquisition means that it will be able to grow its broadband leadership by adding Sky Cable’s internet subscribers to its customer base. It also intends to use Sky Cable’s assets to improve connectivity services in the countryside, hoping to hasten digital adoption in rural areas.

For the Lopezes, the agreement allows them to unload a business that has faced difficulties since 2020. Sky Cable lost its right to provide direct-to-home services when its parent ABS-CBN failed to secure a fresh franchise from Congress.

Afterward, Sky Cable shifted its attention to expanding broadband operations with its residential service Sky Fiber and enterprise product Sky Biz.

In 2022, Cignal Cable Corp., a unit under PLDT’s MediaQuest Holdings Inc., was also supposed to purchase 38.88 percent of Sky Cable for P7.5 billion, but was forced to revoke the deal due to political pressures against ABS-CBN.

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Afterward, Sky Cable shifted its attention to expanding broadband operations with its residential service Sky Fiber and enterprise product Sky Biz.

In 2022, Cignal Cable Corp., a unit under PLDT’s MediaQuest Holdings Inc., was also supposed to purchase 38.88 percent of Sky Cable for P7.5 billion, but was forced to revoke the deal due to political pressures against ABS-CBN.