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Tuesday, March 29, 2011

PLDT to acquire 52% of SUN Cellular operator Digitel

Telecommunications giant Philippine Long Distance Telephone Co. (PLDT) on Tuesday confirmed rumors that it is acquiring a majority stake in Gokongwei-owned telecom firm Digitel Teleommunications Philippines, Inc. (DTPI), which is doing business in the country as mass-based telco operator Sun Cellular.

PLDT is set to buy 51.5% of shares from Digitel worth P69.2 billion, to be paid through an offering of new shares at P2,500 each to JG Summit Holdings, mother company of Digitel.

Assuming minority shareholders agree to the buy-in, the total transaction is pegged at P74.1 billion.

Following the acquisition, a representative of JG Summit Holdings will have a seat at the board of directors of PLDT.

The two telco giants are expected to complete the acquisition process by the second quarter of 2011.

PLDT said it is planning to keep Digitel’s mobile operations separate and intact, giving the company a total of three telecommunications firms under its belt, aside from Smart and Red Mobile.

The company added that it company will make available to Digitel subscribers the depth and breadth of PLDT service offerings, specifically on 3G and broadband.

Digitel is set to bring approximately 450,000 subscribers to PLDT’s massive 1.8 million subscriber base in terms of fixed line operations.

Digitel and JG Summit Holdings earlier today disclosed a voluntary trading halt due to a "major shareholder transaction," fuelling speculations that PLDT is indeed acquiring the young telco player.

I am hoping that PLDT will still allow Sun Cellular to offer affordable mobile and broadband services.

Via:  GMANews.TV

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