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The Philippine Long Distance Telephone Corp. (PLDT) is disposing its communication satellite subsidiary Mabuhay Satellite Corp. (MSC). PLDT is selling its satellite unit to Bermuda-based regional satellite operator Asia Broadcast Holdings Ltd.

The PLDT’s 67% owned subsidiary MSC, according to the company’s disclosure report to the Philippine Stock Exchange (PSE) last Friday, has already signed several agreements with ABS involving the sale of MSC to ABS of “substantially all” of its business  subject to the required regulatory approvals in the U.S.

The ABS has agreed on the transaction which involves a wholesale lease of the Agila-2 satellite from MSC and upon the satisfaction of various conditions, the purchase of ABS of the business of MSC.ABS is led by Citigroup Venture Capital International (CVCI).

However, until such time that the condition for the purchase are met, which include the conduct of satisfactory due diligence audit part from  government approvals, MSC will continue to operate and manage the business on behalf of ABS under an operations and management agreement. It will still be managed by current president Gabriel Pimentel.

MSC’s Agila-2 satellite is a space system spacecraft launched in August 1997 with transponders or communication satellite channels covering Asia from India to the Philippines, Japan to Indonesia and a satellite spot beam over Hawaii to provide connectivity to the U.S. It also has channels covering the region providing capacity for television distribution, direct-to-home broadcasting and VSAT (Very Small Aperture Terminal).

Pimentel said, “ABS, while one of the youngest satellite operators in Asia, has been very progressive with its recent procurement of the ABS-1A and ABS-2 satellites as part of its fleet’s expansion. We are happy with this acquisition, which leverages the satellite operations capabilities developed through the years by Mabuhay Satellite.”

“This will not only ensure future continuity of Mabuhay’s Subic Space Center but will thrust it into growth as this facility is further expanded to support ABS’ growing satellite operations needs,” he added.