In a briefing on Monday, PLDT Chief Executive Officer Manuel V. Pangilinan announced that the firm’s Board of Directors has approved the acquisition by PLDT of 50 percent of SMC’s telco firm while the other 50 percent stake will be bought by Globe.
“The consideration for the acquisition of the SMC telecommunications business is PHP69.1 billion which includes PHP52.08 billion for 100-percent equity interest in Vega Telecom, Inc and the assumption of around PHP17.02 billion of liabilities,” PLDT disclosed to the Philippine Stock Exchange.
The acquisition of the two telco firms to SMC’s telco business will include the 700 MHz spectrum.
“Eighty-five megahertz will be returned to the government and the balance will be split evenly between Globe and ourselves,” said Pangilinan.
“The frequencies returned to the government plus the frequencies that are with the government with NTC (National Telecommunications Commission), we feel we are sufficient to allow third entrant still come in to the Philippines and put up their own telco business,” he added.
The distribution and utilization of the 700 MHz will boost internet speed in the country.
“These frequencies plus this 700 MHz will really help us in providing better internet service. I think the additional spectrum can provide higher and more capabilities for Smart and PLDT to raise its level of its internet service,” Pangilinan noted.
Meanwhile, Pangilinan mentioned that PLDT intends to fund the purchase of 50 percent stake in SMC telco business internally.
This afternoon, PLDT and Metro Pacific Investments Corp. (MPIC) sign an agreement on sale of 25 percent of PLDT’s equity interest in Beacon Electric Asset Holdings Inc. for PHP26.2 billion.
“The total consideration that will go to PLDT is PHP26.2 billion, of which Php17 billion that have been actually funded by MPIC to PLDT last Friday (May 27), so we have the PHP17 billion in cash and we’re ready to pay for PHP13 billion to San Miguel which is due today,” Pangilinan explained. (PNA)
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