PLDT drops talks with NTT on data center business sale

The Philippines’ largest telco, PLDT Inc., is no longer pursuing its discussions with Nippon Telegraph and Telephone Corp. (NTT) for the sale of about 49% of its data center business to the Japanese firm.

PLDT chairman and CEO Manuel Pangilinan said that NTT sought to purchase 51% of the telco's data center business. However, PLDT vowed to keep a majority stake. 

“Because they (NTT) want majority… If you give up, then our revenues will drop by P6 billion,” he told reporters on the sidelines of PLDT's first half financial media briefing on Tuesday.

Pangilinan said PLDT is still talking with other interested parties.

“I think the best way to describe this is that we're still under discussion with one particular potential investor for the data center,” he said.

“It's likely that we're going to sign with the investor within a year or before the end of the process. But this is likely to be subject to one or at least notice to the technical commission,” he added, noting that financial closing would be “probably next year.”

The PLDT chairman earlier said the sale of the telco's data center business could generate more than $1 billion for the company, which would be used to cut debt and fund capital requirements.

During the interview, Pangilinan said that aside from reducing debt, selling the data center business also aims to bring in a partner that would provide “greater value.”

“They should assure us they can, if not guarantee, that they should bring additional revenues and widen the scope of potential locators into our, especially our hyperscaler data center,” he said. —VBL, GMA Integrated News