Makati—(PHStocks)—Philippine Long Distance Telephone Co. (PLDT, PSE: TEL) disclosed today that its $15 million investment in iflix has been converted from convertible notes into ordinary shares of stock after Southeast Asia’s leading internet TV service provider completed this week a new round of funding led by Sky plc, Europe’s leading entertainment company and the Indonesian company Emtek Group, through its subsidiary PT Surya Citra Media Tbk (SCMA) PLDT’s shares account for 7.5% of the total equity stock of iflix which had a post money valuation of $450 million following the investment of Sky Plc amounting to $45 million and the additional investment by SCMA.
Under the terms of its initial investment in iflix in April 2015, whereby PLDT subscribed for non-redeemable convertible notes, the new round of funding triggers the automatic conversion of the company’s convertible notes into ordinary shares and the termination of the Convertible Note Agreement.
The fresh funds raised by iflix will be used to accelerate its growth in Malaysia, Thailand and the Philippines, as well as for expansion into new markets. As of end-2015, the internet TV service had a total of over a million subscribers, the majority of which are in the Philippines. In a statement, Sky PLC said that, apart from investing in iflix, the two parties will hold further discussions to identify areas of future collaboration in the high-growth emerging markets in which iflix operates.
Listed on the London Stock Exchange, Sky plc is Europe’s largest media company. It operates a satellite broadcasting service and an on-demand internet video streaming service as well as broadband and telephone services. Europe’s leading investor in telelvision content, Sky serves 21 million customers in 5 European countries – UK, Ireland, Germany, Australia and Italy.
PLDT has partnered with iflix to offer to subscribers of its DSL and fiber-to-the-home services and to mobile subscribers of its wireless brands Smart and Sun the largest library of top U.S., Asian and local TV shows and films available in the region at very affordable prices.
“This new round of funding validates our investment in iflix last year. It enables the company to further strengthen its leadership position and improve its Internet TV services to the benefit of subscribers, particularly those of PLDT and Smart,” said Manuel V. Pangilinan, PLDT and Smart Chairman and CEO.