LEADING fiber broadband provider Converge ICT Solutions Inc. has entered into a share purchase deal with Digital Telecommunications Philippines Inc. (Digitel) for a 40 percent stake in cable landing operator Digitel Crossing Inc. (DCI).
Converge also bought the 60 percent stake of Digitel in Asia Netcom Philippines Corp. (ANPC), which owns 20 percent of DCI. The total purchase price amounted to $7.5 million or around P375 million.
"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 said in a disclosure to the Philippine Stock Exchange.
Telstra subsidiary Pacnet owns the remaining 40 percent stake in DCI and 40 percent stake in ANPC.
"The parties negotiated and mutually agreed on the purchase price, taking into consideration the estimated fair value of the shares of DCI," Converge added.
Converge said DCI would maintain and operate the cable landing stations for the East Asia Cable Crossing (EAC) and City to City (C2C) cable systems located in Nasugbu, Batangas and Naic, Cavite. These cable landing stations have direct links to major international hubs Singapore, Taiwan, Hong Kong, and Japan.
Converge has been working on beefing up its fiber backbone to reach its goal of servicing 55 percent of Filipino homes by 2025 with high-speed broadband.
It has recently signed a deal with Singapore's Keppel T&T for participation in the Bifrost Cable System. It would also invest in a landing station for the subsea cable system that will land in Davao.