Converge ICT announced Thursday that it has entered into a $4.8 million deal with Digital Telecommunications Philippines Inc to acquire shares in cable landing operator Digitel Crossing Inc. (P231 million).
According to the fiber internet provider, the Deed of Absolute Sale of Shares entails the sale of ten million ordinary shares in Digitel Crossing Inc, which operates multiple cable landing stations throughout the country.
“Acquiring DCI will promote synergies in the telecommunications business of CNVRG and is meant to implement the joint venture between CNVRG, DCI and Pacnet Network (Philippines), Inc,” Converge stated.
“The parties negotiated and mutually agreed on the purchase price, taking into consideration the estimated fair value of the shares of DCI,” the statement continued.
DCI will maintain and operate the cable landing stations for the EAC and C2C cable systems, Converge stated.
Converge disclosed that it has paid $2.7 million for 300,000 common shares in Asia Netcom Philippines Corp. (P127 million).
Digitel Crossing Inc. is a shareholder of ANPC.
The home internet provider has been strengthening its backbone to fulfill its target of reaching 55% of Filipino households by 2025.
It has signed an agreement to participate in the Bifrost Cable System with Singapore’s Keppel T&T. Additionally, it would invest in a landing site for the Davao-bound subsea cable system.
Source: ABS-CBN News