PLDT Chairman and CEO, Manuel Pangilinan, announced that negotiations for a 49% stake in the company’s data center business are progressing, despite the collapse of talks with Japan’s Nippon Telegraph and Telephone Corp. (NTT).
Pangilinan reportedly stated that PLDT is in discussions with "one particular investor," negotiations are "progressing well" and a deal is expected to be finalized this year.
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Pangilinan explained that negotiations with other bidders, including NTT, failed because they sought a majority stake in PLDT’s data center unit. He added that such a deal would result in a PHP 6 billion (USD 105 million) revenue drop and emphasized that PLDT’s options are to either sell up to 49% or retain full ownership.
PLDT aims to finalize a definitive agreement with a new, undisclosed investor this year and complete the deal by 2025. The agreement was originally set to be finalized last month.
The chairman valued the data center unit at over USD 1 billion and noted the company's intention to sell a stake to reduce debt. He later argued that citing debt reduction as the reason for the sale was inadequate, suggesting that the true motivation should be the potential added value from bringing in a partner.
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The unit boasts the largest data center network in the Philippines, including 10 facilities and an additional one under construction.
Last month, PLDT expanded its data center capacity to 100 megawatts by opening its largest facility in Laguna to meet rising demand. Data centers are essential for housing critical servers and networks as companies increasingly move towards digitalization.
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