Philippines Telecom Giant PLDT Seeks $1 Billion for Data Center Ventures
One of the leading telecom providers in the Philippines, PLDT, is working harder to increase the value of its data center operations. The corporation has preparations in place and hopes to make a big decision by June of this year, which would open the door for possible share sales or public listings via a real estate investment trust (REIT).
Going After a Strategic Stake Sale
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During a media briefing, Manuel V. Pangilinan, the chairman of PLDT, disclosed that the company is now in talks with Nippon Telegraph and Telephone (NTT) of Japan and other interested parties about a possible partial sale. This action would bring in more than $1 billion, which would be a significant help to PLDT’s efforts to lower its debt load, which was P242.2 billion as of March 2024.
Taking a Look at Listing a REIT
PLDT is still ready to list its data center division, VITRO, as a REIT on the Philippine Stock Exchange in the event that stake sale talks do not result in the anticipated results. This strategy might result in a lower valuation than an outright sale, even though it would allow PLDT to maintain management and control over its data centers.
A Final Decision Is Expected
Pangilinan stated, “I think we’re going to sell, but nothing has been decided—whether we sell 49 percent, 40 percent, 61 percent, or 60 percent.” This highlights the necessity for a clear plan of action. Indicating a possible preference for keeping control over the data center sector, the PLDT CEO hopes to make a decision by the end of June.
Growth and Self-Assurance in Requests
VITRO now manages ten data centers with a 50 megawatt total capacity. The corporation is building its eleventh plant in Sta. Rosa, Laguna, as part of its ongoing infrastructure expansion efforts. When this new facility is completed, the overall capacity will rise to 99.5 megawatts, indicating PLDT’s confidence in the Philippines’ growing need for data center services.
Stakeholders are anxiously awaiting PLDT’s next move as it makes strategic decisions about its data center business. They are watching to see how these important decisions turn out.
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