PLDT Selling Controlling Stake in BPO Unit to CVC Capital; Retains 20%

   By Cris Larano 
 

MANILA--Philippine Long Distance Telephone Co. (TEL.PH), the country's largest telecommunications group by assets, said Tuesday it agreed to cede control of wholly owned business process-outsourcing unit SPi Global Holdings Inc. by selling an 80% stake to private equity firm CVC Capital Partners.

PLDT said it will retain around 20% of SPi Global, one of the world's largest business process-outsourcing companies, providing customer-interaction, healthcare and publishing services.

PLDT didn't provide financial details for the sale, but people familiar with the matter said earlier the price would top $300 million. The deal is expected to close in March. UBS is PLDT's financial adviser for the deal.

PLDT chairman Manuel Pangilinan said in a statement the company will reinvest some of the proceeds of the sale in Asia Outsourcing Gamma Ltd., a company owned by CVC Partners. Asia Outsourcing is the corporate vehicle that holds CVC Partner's stake in SPi Global.

He said the sale is part of the continuing review of PLDT's business portfolio.

"We remain very confident in the long-term prospects of SPi," Mr. Pangilinan said in reference to the decision to retain a 20% stake in the company.

Write to Cris Larano at [e-mail]

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