Telecommunications giant PLDT Inc. is poised to finalize a partial sale of its data center unit, VITRO Inc., in 2025. The anticipated deal aims to generate substantial funds to bolster the company’s financial position and expedite debt reduction.
PhilStar Global reported that PLDT Chief Finance Officer Danny Yu confirmed that negotiations with potential investors are ongoing. While the process has taken longer than initially projected due to rigorous due diligence, the company remains optimistic about securing a deal next year.
Once an agreement is reached, PLDT will submit the transaction to the Philippine Competition Commission (PCC) for antitrust review. This regulatory hurdle, coupled with the complex nature of the deal, suggests that the full closure may extend beyond 2025.
Equity manager CVC Capital Partners has emerged as a frontrunner for the minority stake in VITRO. PLDT Chairman, President, and CEO Manuel V. Pangilinan confirmed CVC’s interest, highlighting the exclusive negotiation rights granted to the firm. However, Pangilinan also acknowledged the existence of alternative investors should the CVC deal falter.
Prior to engaging with CVC, PLDT had explored a potential partnership with Nippon Telegraph and Telephone Corp. However, the Japanese telco’s demand for a majority stake led to the termination of negotiations.
The proceeds from the data center sale will be allocated towards debt reduction, with the ultimate goal of achieving a debt-to-EBITDA ratio of two times. This strategic move positions PLDT for industry leadership and enhances its long-term financial stability.
PLDT’s current debt burden stands at P272.6 billion, with a significant portion maturing after 2030. The company plans to implement a debt rollover strategy until 2027, while simultaneously utilizing the proceeds from the data center sale to accelerate debt repayment.
