PLDT sells majority stake in SPi Global

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) has unloaded its majority interest in business process outsourcing (BPO) arm SPi Global Holdings Inc. in favor of European private equity firm CVC Capital Partners.

In a statement submitted to the Philippine Stock Exchange (PSE), PLDT said it entered into an agreement to sell the BPO businesses of SPi Global to CVC’s Asia Outsourcing Gamma Limited.

The transaction wherein UBS as the financial adviser of PLDT is expected to be completed by March 2013 after satisfaction of agreed closing conditions.

Both parties did not disclose the amount involved in the transaction due to confidentiality agreement. Proceeds of the sale would be used by PLDT to restructure its debt that stood at $3.1 billion as of end-September last year.

PLDT chairman Manuel V. Pangilinan said the company would reinvest some of the proceeds from the sale into Asia Outsourcing Gamma Limited and continue to participate in the growth of the business as a partner of CVC with an approximate 20 percent stake.

“We continually review our strategy and our portfolio. The transaction announced today represents an opportunity for us to realize attractive returns for the benefit of the PLDT group and its stakeholders. At the same time, we are very happy to be a 20 percent partner with CVC in the business going forward as we remain very confident in the long-term prospects of SPi,” Pangilinan said.

For his part, CVC senior managing director Brian Hong said in a statement that the company sees many significant opportunities within the attractive BPO segments that SPi serves and looks forward to working with the exceptional team at SPi.

 â€œWe are happy to be able to partner with PLDT in this transaction and excited to support SPi as it continues to deliver best-in-class BPO services and expanding capabilities to its customers,” Hong added. 

Firms in Asia have expressed their interest in acquiring PLDT’s wholly-owned subsidiary when it announced last September that it was looking at divesting its interests in SPI Global.

PLDT decided divest 80 percent of its entire interest in SPi Global and retain 20 percent after the buyer committed to further expand and retain its presence here in the Philippines.

SPi Global is a leading globally recognized, full-service BPO provider with 30 offices and facilities around the world, including the US, Netherlands, Philippines, India, Vietnam and Australia. It has over 18,000 employees delivering a wide range of solutions in Customer Relationship Management, Content, and Healthcare.

It offers a wide range of voice and non-voice BPO solutions as well as the broadest global delivery network with 30 locations spanning North America, the Netherlands, Australia, India, Vietnam, and the Philippines.