Listed fiber provider Converge ICT Solutions is acquiring the stake of PLDT unit Digital Telecommunications Philippines (Digitel) in two firms involved in cable landing stations in the country.
In separate disclosures to the local bourse, Converge said on Thursday, June 3, that it signed a deed of absolute sale of shares with Digitel for the acquisition of 10 million common shares in Digitel Crossing Incorporated (DCI) for $4.84 million.
Converge also signed another deed with Digitel for the acquisition of 300,000 common shares in Asia Netcom Philippines Corporation (ANPC) for $2.66 million.
Converge told Rappler that the transaction has been completed as of Wednesday, June 2. This means that the fiber provider now owns a 60% controlling stake in ANPC and a 40% stake in DCI. ANPC has a 20% share in DCI.
Pacnet Network (Philippines) Incorporated, which is under Australian telco Telstra, owns 40% of ANPC and the remaining 20% in DCI.
DCI maintains and operates the cable landing stations in the Philippines for East Asia Crossing (EAC) and C2C cable systems.
ANPC, meanwhile, owns the land assets where the EAC cable landing station is located.
“Bringing DCI [and ANPC] into Converge will promote the strategic imperative of Converge to expand its capabilities in telecommunications since it acquires interest in entities involved in providing, operating, and maintaining the cable landing stations of EAC and C2C international cables,” said Converge.
Recently, Converge signed a deal with Singapore’s Keppel T&T, granting the Philippine telco usage rights in the Bifrost cable system.
Converge aims to cover 55% of Filipino households by 2025. – Rappler.com