PLDT Inc. said Wednesday it plans to invest P2.1 billion in Radius Telecoms Inc., a telecommunications company with a strong fiber network infrastructure to strengthen its market position and increase its market share in the Philippines.
The company’s strategic investment will see PLDT acquire 2.49 million shares, or 34.9-percent equity shares in Radius, bolstering its fiber network reach and unlocking potential synergies between the two firms.
It said the indicative purchase price is subject to due diligence and execution of definitive agreements.
“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+ residential multi-dwelling units and 200+ villages,” PLDT said.
Radius 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 telecommunications services in the Philippines, and between the Philippines and other countries and territories.
Radius is 100-percent owned by Paragon Vertical Corp., a wholly-owned subsidiary of e-Meralco Ventures Inc., which is also wholly-owned by Manila Electric Company.
“By leveraging on the existing infrastructure and co-building in key areas, both PLDT and Radius stand to gain cost efficiencies,” PLDT said.
“This potential partnership will strengthen the market presence of PLDT and Radius and unlock synergies in solution capabilities and network coverage to better serve and improve quality of service to PLDT and Radius customers across the country,” it said.
PLDT earlier reported that its data and broadband revenues grew 4 percent to P116.9 billion in the first nine months of 2023 from the same period in 2022.
Home’s fiber-only service revenues grew 10 percent to an all-time high of P39.3 billion in the first nine months of 2023. Fiber-only revenues accounted for 87 percent of total Home revenues of P45.3 billion, which were 2 percent higher than in the same period in 2023.
PLDT’s total fiber subscribers as of end-September 2023 reached 3.14 million, with 210,000 fiber net additions in the nine-month period.
