LISTED fiber broadband provider Converge ICT Solutions, Inc. announced on Thursday that it had acquired shares in cable landing stations operator Digitel Crossing, Inc. and Asia Netcom Philippines Corp. that owns the land assets where the East Asia Crossing (EAC) cable landing is located for $4.84 million and $2.66 million, respectively.
In a disclosure to the stock exchange, Converge said it entered into a deed of absolute sale of shares with Digital Telecommunications Phils., Inc. for the acquisition of 10,000,000 common shares in Digital Crossing, which maintains and operates the cable landing stations in the Philippines for EAC and C2C (City-to-City) cable systems.
Bringing Digital Crossing into Converge is seen to promote the “strategic imperative” of the company “to expand its capabilities in telecommunications since it acquires interest in entities involved in providing, operating and maintaining the cable landing stations of EAC and C2C international cables,” the listed company said.
In a separate disclosure, Converge said it likewise entered into a deed of absolute sale of shares with Digital Telecommunications Phils. for the acquisition of 300,000 common shares in Asia Netcom Philippines.
Asia Netcom Philippines is also a shareholder of Digitel Crossing.
“Acquiring Asia Netcom Philippines will promote synergies in the telecommunications business of Converge,” the company said.
It is also meant to implement the joint venture between Converge, Pacnet Network (Philippines, Inc), and Asia Netcom Philippines.
Converge ICT Solutions shares closed 0.90% lower at P19.76 apiece on Thursday. — Arjay L. Balinbin