The Uys are in the midst of an asset restructuring with the intention of creating a new business entity separate from Converge but one that will operate and maintain the group’s sprawling network infrastructure, including its Internet cables and ports, an insider said.
This is similar to how telco giants Globe and Smart Communications, which sold their telco towers to third parties, executed similar deals only to lease them back.
Strategic investor entry in 2025?
In this case, the new entity, which will have the requisite congressional franchise, will be controlled by the Uys instead of an independent company, an insider explained.
The major goal of the carve-out is to facilitate a minority sale to a potential strategic investor in 2025, with the Uys keeping majority control of the business.
The Uys might eventually consider a public listing, potentially through a real estate investment trust (REIT) structure, but this will depend on future market conditions, the insider added.
Bigger than Converge's value
The target valuation? An insider estimated it could climb to $3 billion (P175 billion)—or even higher—due to strong interest from strategic investors and private equity players, while the stock market regains its footing.
This is significantly larger than Converge’s market value of P116 billion.
SkyCable, DITO partnerships
The broader goal is to open up the group’s vast internet network to outside players.
The implications here are significant given the extensive universe of small internet companies, and other service providers.
Major telcos and tower companies rely on fiber infrastructure for their cell sites, an insider said.
The Uys did a soft-launch on this strategy when Converge sealed a strategic alliance with the Lopez family’s SkyCable, granting the latter access to their fiber network.
Converge also has a separate network sharing deal with DITO Telecommunity, backed by Davao-based tycoon Dennis A. Uy.
Internet cables for all
Similar deals are expected to materialize as businesses that lack the vast resources to build up their own fiber network from scratch pursue expansion by riding on the Uys’ ultra-fast and modern cable infrastructure.
Dennis Uy had previously underscored how Converge’s solutions cater to everyone—small businesses, large enterprises, homes, and public institutions.
He has frequently stated that “no one will be left behind” in their expansion efforts, regardless of economic status.
This is another important step in that direction.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
