PLDT Inc. on Wednesday said it was set to invest P2.1 billion in Radius Telecoms Inc., a telco unit of Manila Electric Co. (Meralco), to strengthen its market position and increase its market share in the Philippines.

The company's strategic investment will see PLDT acquire 2.49 million shares, or a 34.9 percent equity stake in Radius, bolstering its fiber network reach and unlocking potential synergies between the two firms.

The indicative purchase price is P2.11 billion, PLDT told the stock exchange, subject to due diligence and execution of definitive agreements.

The proposed buy-in was approved by the telco's board in a meeting on Tuesday, at a share price of around P849.28 each.

"The proposed investment is a strategic move to fortify PLDT's market position and increase its market share through a harmonious integration of solution capabilities and market coverage by capitalizing on Radius' 10 percent fiber facilities that span 150 enterprise buildings, 200 residential multi-dwelling units, and 200-plus villages," PLDT said.

Radius holds a congressional telecommunications franchise to construct, install, establish, operate, and maintain for commercial purposes and in the public interest, the business of providing basic and enhanced telecommunications services in the Philippines, and between the Philippines and other countries and territories.

Radius is 100-percent owned by Paragon Vertical Corp., a wholly owned subsidiary of e-Meralco Ventures Inc., which is part of the Meralco group.

"By leveraging on the existing infrastructure and co-building in key areas, both PLDT and Radius stand to gain cost efficiencies," PLDT said.

"This potential partnership will strengthen the market presence of PLDT and Radius and unlock synergies in solution capabilities and network coverage to better serve and improve quality of service to PLDT and Radius customers across the country," it added.

PLDT earlier reported that its data and broadband revenues grew by 4 percent to P116.9 billion in the first nine months of 2023 compared to the same period in 2022.

Home's fiber-only service revenues grew 10 percent to an all-time high of P39.3 billion in the first nine months. It accounted for 87 percent of total Home revenues of P45.3 billion, which were up 2 percent from a year earlier.

PLDT's total fiber subscribers as of end-September 2023 stood at 3.14 million, with 210,000 fiber net additions for the first nine months.

As of end-September 2023, the number of PLDT's fiber ports stood at 6.15 million, covering more than 18,000 barangay nationwide.

On Wednesday, PLDT shares fell by P3.00, or 0.24 percent, to P1,272 each.

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