PLDT is in talks with Japan’s Nippon Telegraph and Telephone (NTT) to sell up to 49% of their data center business. This announcement came from PLDT Chairman Manuel Pangilinan, as he told Reuters last Tuesday.
The deal could be valued at USD 750 million, said two anonymous people with direct knowledge of the matter. PLDT declined to comment on this, while NTT did not respond to requests for any comments either.
NTT has established itself as Japan’s largest phone company, having a market value of USD 99.9 billion.
One of the informants noted that PLDT will use the proceeds from the deal to cut debts. In addition, the company needs the funding for new and ongoing data center projects. A deal could be reached during the second half of this year.
PLDT is the Philippines’ largest telecommunication entity with businesses encompassing fixed line and wireless telephony. It currently owns and operates 11 data centers through its subsidiary ePLDT.
The company’s share price has climbed 5.6 per cent year-do-date, giving them a market value of USD 5.09 billion.
A deal would stress a growing interest in Southeast Asian data centers as an expanding digital population. The two companies have also collaborated prior, boosting the Philippines’ global network infrastructure with NTT’s ultra-bandwidth connectivity reaching up to 100Gbps.
What do you guys think of PLDT being in talks with NTT?
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