PLDT Inc. is at a crossroad on the subject of its data center business but firm on arriving at a decision by June this year on whether the business is sold off or alternatively retained as a public or listed real estate investment trust (REIT) entity.
According to Manuel V. Pangilinan, PLDT chairman and chief executive, the business has held talks with Japan’s Nippon Telegraph and Telephone (NTT) and other prospective investors for the likely sale of its data center business.
“I think we’re going to sell, [but] nothing has been decided if we do sell 49 percent, 40 percent, 61 percent or 60 percent,” Pangilinan told reporters.
He said the business should arrive at a decision “maybe on or before the end of June where we want to go.” Pangilinan said.
According also to Pangilinan, the data center business will be sold north of $1 billion.
Should negotiations fail, the alternative plan is to pursue the REIT angle and its listing at the Philippine Stock Exchange (PSE).
“Well, the advantage of REIT is that, as I said, we could retain control of the equity and we will continue to manage the data centers. There’ll be a slight penalty to that because you cannot get the full value.
“If you have to sell equity and control equity, then the price is higher. But, you know, it’s not a perfect world,” he quipped.
Proceeds from the data center sale will reduce PLDT’s debt burden amounting to P242.2 billion as of end-March this year..
The hyper scale-grade data center operator VITRO manages 10 facilities with a combined capacity of 50 megawatts and building its 11th data center in Sta. Rosa Laguna which would boost aggregate capacity to 99.5MW.
