PLDT gets regulatory nod to buy Sky Cable

The Philippines' antitrust agency has approved PLDT's bid to acquire broadband and cable TV provider Sky Cable for Php6.75 billion (US$119.8 million).

The deal, which was announced in March 2023, will see the telco giant acquiring 100% of Sky Cable's business, covering some 1.37 billion shares sold at ₱4.9043 each ($0.08). With the planned purchase, PLDT would add about 300,000 cable users and 350,000 broadband customers to its portfolio.

According to the Manila Bulletin, PLDT will integrate Sky Cable's fiber broadband business with its own, while the cable TV business will be absorbed by DTH satellite provider Cignal TV, which is owned by MediaQuest, a media partner of the PLDT Group.

Before giving the green light, the Philippine Competition Commission (PCC) assessed the impact of the merger in five markets: distribution of fixed broadband services; distribution of pay television services; over-the-top streaming platforms and Internet protocol television; content production; and content distribution.

In its evaluation, PCC had to determine whether the merger would restrict competition in each market, which is detrimental in the delivery of quality services to consumers. The competition watchdog gave its approval of the deal on January 19.

Subject to closing conditions

With the PCC's approval, the PLDT and Sky Cable are one step closer to completing the deal.

"The proposed transaction is still subject to a number of closing conditions," said Sky Cable owner ABS-CBN in a statement issued last Monday.

According to local news reports, PLDT similarly made a disclosure to the Philippine Stock Exchange last Monday that the PCC has approved the proposed merger but "it will not be implemented until all closing conditions are fulfilled."

In an advisory posted on its website, Sky Cable said it would continue to deliver its services until the transaction is finalized.

"While awaiting the required regulatory approvals, we assure you that SKY's broadband and cable TV services will continue," it said. "Once approvals are obtained, SKY is committed to assisting all its cable TV subscribers to ensure a transition to their preferred service."

When the planned acquisition was announced last year, PLDT said the combined resources of both companies will boost broadband coverage in remote areas.

Citing a report by Fitch Group's CreditSights, the Inquirer reported in March 2023 that PLDT is expected to gain a ''comfortable lead" in the broadband Internet market with the Sky Cable acquisition. It said the telco operator could increase its market share by 2%-3%, to 47%-48%, cementing its lead in the industry.

It added that the Sky Cable purchase will widen the gap with its rivals Globe Telecom and Converge ICT Solutions, which account for 31% and 21% of the market.