Cable providers Cignal and Sky Cable sealed a deal that will give the former a 38.8% or P2.86 billion stake in the latter. At present, Sky Cable has over 300,000 subscribers and nearly 350,000 broadband subscribers as of the end of June 2022.
Cignal’s investment will enable Sky Cable to expand its coverage, offerings, and services, as well as broadband reach.
“(The deal will enable the two cable companies) to support the government’s plan to prioritize the development of the country’s digital infrastructure, reaching a larger portion of the Filipino population and providing them with greater choices for their content and internet requirements,” the statement said.
Sky Cable is operating the Knowledge Channel, which provides educational programs for children, and DepEd Channel, which offered Long-Distance Learning to Filipino youth during the pandemic in cooperation with the Department of Education. Cignal Cable plans to expand the public services programs that will be offered by Sky Cable to assist the Philippine government in providing public services to the Filipinos, particularly in remote areas.
ePLDT, a subsidiary of PLDT Inc., will fund, through a loan extended to Cignal Cable, the P7.5 billion n acquisition cost of Cignal Cable of the Sale Shares and the foregoing debt instruments.
Financial closing, expected within the month of August 2022, shall be subject to compliance with certain closing conditions including the full payment of the purchase price for the common shares, subscription to the Debt Instrument, and purchase of the Convertible Note.