PLDT Inc. on Wednesday announced plans to invest P2.1 billion in a telecommunications company with a strong fiber network infrastructure, to strengthen its market position and increase its market share in the Philippines.
The investment will see PLDT acquire 2.49 million shares or 34.9 percent equity shares in Radius, bolstering its fiber network reach and unlocking potential synergies between the two firms. The indicative purchase price of the proposed Investment is P2.11 billion, subject to due diligence and execution of definitive agreements.
“The proposed Investment is a strategic move to fortify PLDT’s market position and increase its market share through a harmonious integration of solution capabilities and market coverage by capitalizing on Radius’ 100 percent fiber facilities that span 150 enterprise buildings, 200+ residential multi-dwelling units, and 200+ villages,” PLDT said.
Radius holds a congressional telecommunications franchise to construct, install, establish, operate, and maintain for commercial purposes and in the public interest, the business of providing basic and enhanced telecommunications services in the Philippines, and between the Philippines and other countries and territories.
Radius is 100 percent owned by Paragon Vertical Corporation, which is a wholly-owned subsidiary of e-Meralco Ventures, Inc., a wholly-owned subsidiary of the Manila Electric Company.
“By leveraging on the existing infrastructure and co-building in key areas, both PLDT and Radius stand to gain cost efficiencies,” PLDT said.
“This potential partnership will strengthen the market presence of PLDT and Radius and unlock synergies in solution capabilities and network coverage to better serve and improve quality of service to PLDT and Radius customers across the country,” it added.
