Converge invests in PH cable landing operator Digitel Crossing

ABS-CBN News

Posted at Jun 03 2021 09:58 AM | Updated as of Jun 03 2021 04:29 PM

MANILA - Converge ICT said Thursday it signed a deal with Digital Telecommunications Philippines Inc for the purchase of shares in cable landing operator Digitel Crossing Inc for $4.8 million (P231 million).

The Deed of Absolute Sale of Shares involves 10,000,000 common shares in Digitel Crossing Inc which operates several cable landing stations in the country, the fiber broadband provider told the stock exchange. 

"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.

"The parties negotiated and mutually agreed on the purchase price, taking into consideration the estimated fair value of the shares of DCI," it added.

Converge said DCI would maintain and operate the cable landing stations for the EAC and C2C cable systems.

In a separate disclosure, Converge said it has also purchased 300,000 common shares in Asia Netcom Philippines Corp for $2.7 million (P127 million).

ANPC is a shareholder of Digitel Crossing Inc.

The home broadband provider has been working on beefing up its backbone to reach its goal of servicing 55 percent of Filipino homes by 2025.

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.

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