Top Philippine Telco Seeks $1 Billion Valuation for Data Centers

(Bloomberg) -- PLDT Inc., the Philippines’ biggest telecom company, is seeking “north of $1 billion” valuation for its data center business as it weighs either a partial sale or a real estate investment trust listing for the assets.

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PLDT is in talks with multiple parties, including its own shareholder Japan’s NTT, to sell a stake in the data centers, executives said in a briefing on Thursday after the company reported its first-quarter net income grew 9% from a year ago to 9.82 billion pesos ($171 million).

“If we cannot get the values from equity investors...we might go for a REIT of the data centers,” PLDT CEO Manuel Pangilinan said. The company may decide on the fund-raising plan by next month, Pangilinan said, adding that he preferred PLDT to keep control of the business.

PLDT owns the largest data center network in the Philippines, covering 10 facilities with a combined 8,930 racks. It’s building an 11th site that will have 4,500 racks and will bring the total load to nearly 80 megawatts.

The move to cash in on the data center business comes as PLDT plans to cut the group’s debt which stood at 257 billion pesos as of end-March.

PLDT will continue to reduce capital expenditure — set at 75 billion to 78 billion pesos this year from 85.1 billion pesos in 2023 — to improve its debt profile by next year, PLDT Chief Financial Officer Danny Yu said in the same briefing.

Pangilinan, who returned as CEO from January this year after the previous one retired in December, said the search for a new head is ongoing. “I don’t intend to stay too long on this seat,” he said.

Read More: Top Philippine Telco’s CEO Steps Down For Health Reasons

PLDT shares fell 1% to close at 1,355 pesos on Thursday.

--With assistance from Andreo Calonzo and Ditas Lopez.

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