PLDT: Disputes in final terms led to aborted Sky Cable buyout

February 28, 2024 | 12:00am

MANILA, Philippines — Telco giant PLDT Inc. said it failed to agree with Sky Cable Corp. on the commercial terms of their P6.75-billion merger, leaving them no choice but to call off the deal abruptly.

In a disclosure to the Philippine Stock Exchange, PLDT said it jointly decided with Sky Cable to abandon their deal on disagreements in the final terms.

The parties failed to fulfill certain closing conditions, compelling them to review the commercial terms for the buyout of Sky Cable’s broadband segment.

From there, PLDT and Sky Cable were unable to meet halfway on the final conditions, leading to the termination of the transaction.

The parties revoked the deal even though it had secured clearance from the Philippine Competition Commission (PCC).

It took PLDT and Sky Cable almost a year to obtain the PCC’s approval for the buyout. The sale was disclosed to the public in March 2023, but the agency approved it only in January 2024.

As earlier reported by The STAR, sources said talks between PLDT and Sky Cable collapsed due to disputes on the amount of debt the telco would absorb from the merger.

Sources said Sky Cable would pass on about P13 billion in debt to PLDT had the buyout pushed through, an amount PLDT was open to absorbing as long as the acquisition cost is repriced.

Initially, the parties valued the transfer of Sky Cable’s internet business to PLDT at P6.75 billion, a cost that was viewed as a win-win scenario for both companies.