PLDT, the leading telecommunications provider in the Philippines with a market capitalization exceeding $5 billion, is negotiating the sale of a 49% stake in its data center subsidiary, ePLDT, to Japan's telecom giant NTT, valued at $100 billion and a dominant player in its home market. The potential $750 million deal, confirmed by Reuters with insights from PLDT Chairman Manuel Pangilinan, aims to reduce PLDT's debt and finance the expansion of its data center operations, which currently includes 11 facilities across the Philippines. This strategic move underscores the growing importance of data center investments in Asia, driven by increasing demands for cloud services and digital transformation initiatives.
The largest telecommunications company in the Philippines is PLDT and it is in talks to sell 49% of its data center business to Japan's Nippon Telegraph and Telephone ("NTT). PLDT aims to use the proceeds from this sale to cut debt and fund ongoing and new data center projects.
Reuters confirmed the talks with PLDT Chairman Manuel Pangilinan and people familiar with the deal have confirmed that the business is being valued at $750 million.
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PLDT was founded in 1928 and has become the largest such company in the Philippines. It operates 11 data centers in the Philippines through a subsidiary named ePLDT. The company's market cap exceeds $5 billion.
NTT is Japan's largest phone company with a market cap of around $100 billion. It has a near monopoly in Japan and consistently ranked in the top 100 companies in the Fortune Global Business Ranking.
