PLDT Chairman: Deal to Sell SPi Global Unit Likely Within Weeks

   By Cris Larano 
 

MANILA--Philippine Long Distance Telephone Co. (TEL.PH) said Wednesday it expects to close within weeks a deal to sell a controlling stake in its business process outsourcing unit SPi Global Holdings to private equity firm CVC Capital Partners Ltd.

Manuel Pangilinan, chairman of PLDT, the country's largest telecommunications company by assets, told reporters that an agreement with CVC Capital for the sale of 80% of SPi Global is possible "in the next few weeks." Mr. Pangilinan added that PLDT intends to keep the remaining 20% stake in SPi Global.

PLDT is exclusively negotiating with London-based CVC Capital for the sale of SPi Global, which PLDT acquired in 2006 for $158.8 million. The deal with CVC could be worth over $300 million, a person with knowledge of the deal said last week.

This wouldn't be the first time that CVC is investing in Philippine companies. It bought a 15% stake in lender Rizal Commercial Banking Corp. (RCB.PH) in 2011.

PLDT said in September it was reviewing its investment portfolio as it seeks better returns.

UBS AG is advising PLDT on the deal.

Write to Cris Larano at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires