The Philippines’ largest cable operator, Sky Cable, could soon enter the satellite pay-TV market after acquiring a satellite TV system owned by Uni-Cable TV, a subsidiary of rival Destiny Cable (DCI).
In a filing with the Philippine Stock Exchange,…
The Philippines’ largest cable operator, Sky Cable, could soon enter the satellite pay-TV market after acquiring a satellite TV system owned by Uni-Cable TV, a subsidiary of rival Destiny Cable (DCI).
In a filing with the Philippine Stock Exchange, Sky Cable said that it bought the Uni assets, which also include a cable TV head-end station as well as related equipment, for PhP94m (US$2.17m).
In the asset purchase agreement announced on 11 May 2012, Sky Cable also acquired the antennae television systems belonging to Destiny for PhP2.4bn (US$55m), as well as the commercial telecommunications facilities, and coastal, aeronautical, television and broadcasting stations held by Solid Broadband Corporation , Destiny’s parent, for PhP1bn (US$23m).
Sky Cable said it will use “both equity and borrowed funds to finance the purchase of the foregoing assets of DCI, SBC, and UNI.”
Meanwhile, David Lim, the president of DCI, SBC, and UNI, said: “The pay-TV and broadband markets require continuous significant investments, if we are to keep up with our major competitors, particularly the direct-to-home satellite (DTH) and telco companies. (…) We believe our agreement with Sky will allow subscribers to enjoy the benefits of the latest technologies.”
Lim added that these transactions will allow Destiny to focus on other core businesses, including its mobile phone brand MyPhone.
The satellite pay-TV market is currently populated with three DTH platforms: Dream Satellite TV, which is controlled by Antonio Cojuangco, a former chairman of telecoms incumbent PLDT; Cignal, which is owned by PLDT; and G-Sat, held by GBMI.
