Manila's PLDT to sell outsourcing unit to CVC
MANILA Feb 5 (Reuters) - Philippine Long Distance Telephone Co said it will sell a majority stake in its business process outsourcing unit to private equity firm CVC Capital Partners Ltd - a deal that underlines rising interest in the Philippines as an investment destination.
Terms were not disclosed but last month a source familiar with the matter told Reuters that the deal was valued at about $320 million including debt.
PLDT, the country's second-most valuable listed firm, said it would sell an 80 percent stake in SPi Global Holdings, a diversified business process outsourcing firm with global operations, and keep the remaining holding.
The unit had also attracted interest from other buyout firms including Bain Capital and Carlyle Group, according to Basis Point, a Thomson Reuters publication.
The deal is expected to be completed next month. PLDT said it continually reviews its strategy and portfolio and the sale represented an opportunity to realise attractive returns for shareholders.
UBS was PLDT's exclusive financial adviser.
SPi has more than 18,000 employees and operations in the United States, Europe, the Philippines, India, Vietnam and Australia.