Integrated telecommunications firm PLDT Inc. is buying out Sky Cable Corp., the broadband business of the Lopez family, for P6.75 billion to benefit both parties’ existing subscribers.

In a stock report, the Manuel V. Pangilinan-led PLDT announced that it entered into a Sale and Purchase agreement with Sky owners — Vision Corporation, ABS-CBN Corporation, and Lopez, Inc. — on Thursday, 16 March.

The transaction covers the acquisition of Sky’s total issued and outstanding capital stock composed of 1.38 billion common shares.

According to PLDT, the transaction follows its “mission to narrow the digital divide by expanding broadband connectivity.”

Expansion of Phl’s digital infrastructure

It also supports the government’s drive to expand the country’s digital infrastructure.

Separately, listed media company ABS-CBN, which owns 58.7 percent shares in Sky, said it expects to receive P4 billion from the sale.

It also noted that “proceeds to be received by Sky Vision will be used, among others, to settle its obligations, including its obligations to ABS-CBN.”

PLDT first announced its plan to acquire Sky in 2020, but the company immediately withdrew its bid due to the “risk of possible divestment” that may arise because of the provisions of the Bayanihan To Recover As One Act or Bayanihan II back then.

The Bayanihan II, which was signed by former President Rodrigo R. Duterte in September 2020, exempted mergers and acquisitions from compulsory notification “with a transaction value of less than P50 billion which are entered into within two years” from the effectivity of the law.

The Philippine Competition Commission then said the new law also suspends its “exercise of motu proprio review of these mergers and acquisitions for one year.”