PLDT and Sky Cable acquisition deal is pushing through. The Phase II review started on August 17, 2023.
PLDT is set to acquire Philippines’ most popular cable service provider, Sky Cable. The Philippines Competition Commission or PCC has approved the sale of Sky Cable’s broadband business to PLDT.
According to a report, the deal was announced in March last year involving the sale of Sky Cable’s 1.38 billion common shares, with each share priced at ₱4.9043, based on the agreed equity valuation of the Lopez company.
As per PCC, the Phase II review commenced on August 17 last year. If everything goes well, PLDT will acquire the related business and assets by buying 100% of Sky Cable’s “issued and outstanding capital stock.”
So, what will happen to the broadband subscribers? There’s no word yet what the future holds for them. PLDT may keep the business running since it’s an excellent consumer base.
Some Redditors have voiced their opinions about the matter. One user posted that PLDT perhaps wants to own something it can capitalize on to expand and reach more people. One responded to that saying that PLDT may want to expand Cignal using the infrastructure of Sky.
A user added that perhaps the deal is for Sky Cable subscribers, where the acquisition may lead to improved efficiency. Of course, others see the move as cutting the competition in this already tiny market.
When SMART acquired SUN, it trimmed the competition and it also favored Globe. For those who can remember, SUN offered the most affordable and crazy pricing that forced competitors to threaten the newcomer for predatory pricing.
The acquisition isn’t likely to cause inconvenience to subscribers like forcing them to transfer or whatnot. The most possible outcome is the integration or combination of Sky Cable and Cignal.
We’ll know more once the acquisition is complete.
