PLDT Inc. is acquiring a 35 percent stake in Radius Telecoms Inc., a home broadband internet service unit of Manila Electric Co. (Meralco), for P2.116 billion in a strategic move to strengthen its market share in the fiber broadband segment.
Last Tuesday, PLDT’s board of directors approved the proposed investment of PLDT in Radius by subscribing to over 2.491 million shares of common stocks, representing 34.9 percent interest in Radius.
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 plus residential multi-dwelling units, and over 200 villages,” the company said in a disclosure to the Philippine Stock Exchange yesterday.
The payment terms of the indicative amount of the proposed investment are subject to negotiation and execution of definitive agreements, PLDT added.
It said the closing of the proposed investment is subject to the satisfaction of closing conditions that are customary in transactions of a similar nature including, but not limited to, the completion of due diligence review, procurement of necessary internal corporate and regulatory approvals, and execution of definitive agreements.
Radius is 100 percent owned by Paragon Vertical Corp., a wholly-owned subsidiary of e-Meralco Ventures Inc., which is a wholly-owned subsidiary of Meralco.
Radius is operating under the brand RED Fiber, which started operations in November 2020 in select areas in Metro Manila, Laguna, Cavite, Rizal, Bulacan and Cebu.
It has service packages like internet only and dual play plans, which provide a variety of high-definition IPTV channels in partnership with CignalTV, a direct-to-home satellite provider.
Radius also 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 telecoms services in the Philippines, and between the Philippines and other countries and territories.
As of the end of September 2023, PLDT’s total fiber subscribers stood at 3.14 million, with 210,000 fiber net additions for the first nine months.
