In a move set to reshape its data centre landscape, the Philippines’ leading telecommunications giant, PLDT, is in advanced discussions to sell up to 49% of its data centre business to Japan’s Nippon Telegraph and Telephone (NTT), according to PLDT Chairman Manuel Pangilinan.
The potential deal could see the data centre business valued at a substantial $750 million. PLDT has refrained from commenting on the valuation, while NTT has yet to respond to requests for comment.
NTT, Japan’s largest phone company with a market value of $99.9 billion as of Tuesday, according to LSEG data, appears poised to bolster its presence in Southeast Asia through this strategic investment.
For PLDT, the transaction would not only inject a significant cash infusion but also provide a means to pare down debt and finance ongoing and new data centre projects, as indicated by one of the sources. If finalized, the deal is expected to be concluded in the latter half of this year.
Established in 1928, PLDT stands as the Philippines’ premier telecommunication conglomerate, offering a spectrum of services including fixed-line and wireless telephony. The telecom giant operates 11 data centres through its subsidiary, ePLDT.
Despite the ongoing challenges posed by the pandemic, PLDT’s shares have exhibited resilience, climbing 5.6% year-to-date. As of Tuesday, its market value stood at $5.09 billion.
(Source: Data Center Dynamics | MSN | Market Screener)
