MERGED: Smart buys Digitel (Sun Cellular)

[ong76win2]

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PLDT-Digitel deal deadline extended
06/30/2011 | 11:55 AM

Telecommunications giant Philippine Long Distance Telephone Co. and conglomerate JG Summit Holdings Inc. extended the deadline for the closing date of the acquisition of Digital Telecommunications Philippines Inc. (Digitel).

In a statement to the Philippine Stock Exchange, PLDT and JG Summit said that the original deadline of June 30, 2011 will be extended to July 30, 2011.

"The parties remain committed to this deal since it stands to bring substantial benefits not only to the shareholders but also to the consumers and the general public who will all benefit from the combined resources and expertise of the PLDT Group and Digitel. In the end this means higher services being made available to a wider market at affordable prices," said Manuel V. Pangilinan, PLDT chairman.

Alaso, James L. Go, JG Summit chairman, reiterated the "benefits of a stronger and more robust telecommunications company" for Sun subscribers.

The P69.2-billion share-swap deal is currently under probe by the National Telecommunications Commission following opposition from various groups that claimed that the deal could pave the way for a new monopoly in the telecommunications sector.

The deal will give PLDT 51.5-percent stake in Digitel in exchange for JG Summit holding about 12 percent of the whole PLDT Group.

Combined, PLDT and Digitel will account for two thirds of the entire local market in terms of revenues. -- CMA/OMG, GMA News

Source: PLDT-Digitel deal deadline extended - Business - GMA News Online - Latest Philippine News

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Digitel acquisition deadline extended anew
August 2, 2011, 3:27am

MANILA, Philippines — Philippine Long Distance and Telephone Company (PLDT) and JG Summit Holdings Inc. have again agreed to extend the closing date for the P69-billion sale of JG Summit’s stake in Digital Telecommunications Philippines Inc.

In separate but identical disclosures to the Philippine Stock Exchange, PLDT and JG Summit agreed to extend anew the closing date of the transaction from July 30, 2011 to August 26, 2011.

“The parties are awaiting the approvals of various regulatory bodies,” the two firms said. The National Telecommunications Commission has wrapped up hearings but has yet to decide whether to approve the deal amid stiff opposition from rival telecommunications firms and consumer groups.

PLDT chairman Manuel V. Pangilinan said ‘the regulatory process, which started in early April, has taken longer than we anticipated. Nonetheless, our commitment to this deal remains unchanged because we are firm in our belief that the transaction stands to bring substantial benefits not only to the shareholders but also to the consumers and the general public.”

For his part, JG Summit chairman James L. Go said ‘we eagerly await the decision of the regulators so that we can proceed with closing the deal with PLDT. This will translate to the Sun subscribers benefiting from a stronger and more robust telecommunications company resulting from the PLDT-Digitel deal.”

JG Summit is selling 3.28 billion Digitel shares, representing a 51.55 percent equity stake; as well as bonds convertible into 18.6 billion Digitel shares, as well as advances of P34.1 billion to Digitel.

The agreed consideration for the assets is P69.2 billion which will be settled by the issuance of one new PLDT share for every P2,500 consideration payable for the assets.

JG Summit is expected to own approximately 12.8 percent of PLDT’s enlarged share capital after the transaction. A representative of JGS is expected to join the Board of Directors of PLDT.

“In making this decision, JG Summit went through a rigorous review of its strategic options and concluded that PLDT is the best partner for all our stakeholders - Digitel subscribers should reap benefits from PLDT’s sizeable infrastructure and leading-edge platforms,” said Go.

He added that ‘the transaction should also bring significant value to JG Summit’s shareholders without relinquishing our participation in the Philippine telecommunications industry.’ (JAL)

Source: Digitel acquisition deadline extended anew | The Manila Bulletin Newspaper Online

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Senate committee upholds validity of PLDT-Digitel share swap deal
By ROLLY T CARANDANG
August 23, 2011, 11:39pm

MANILA, Philippines — The Senate committee on public services has upheld the validity of the share-swap deal between PLDT and Digitel.

In a 12-page report after conducting an inquiry into the PLDT-Digitel deal, the committee chaired by Sen. Ramon Revilla Jr. found that “the proposed acquisition by PLDT of a controlling interest in Digitel (including, indirectly, Digitel Mobile Phils Inc.) is consistent with, and not in violation” of the separate legislative franchises granted to PLDT and Digitel, also known as Sun Cellular.

The committee conducted an inquiry into share-swap deal on motion of Senator Joker Arroyo who filed Resolution 477 asking the Senate to determine if the transaction is consistent with, or not in violation of, certain provisions of the two telecom firms’ respective franchises and “whether the arrangement would be in the public interest.”

It held subsequent hearings that reviewed the acquisition by PLDT of a controlling interest in Digitel and found that the transaction was “in pursuit and furtherance of the businesses and operations contemplated under the respective franchises of PLDT and Digitel [and] does not require approval of Congress.”

The committee also recalled that during the first hearing, rival Globe Telecom had admitted that the transaction was legal. It noted that the PLDT-Digitel deal was no different in form and substance from Globe’s acquisition of Isla Communications Co. in 2001.

“Moreover, although Globe vehemently insisted that there were no formal negotiations involved, it was established in the hearings that there were at least some preliminary discussions between Globe and Digitel to indicate the former’s interest in acquiring the assets of Digitel,” Revilla’s committee report noted.

On the issue of whether the share-swap deal between PLDT and Digitel constituted a violation of the law prohibiting monopolies and cartels, the committee held that “there is effectively no comprehensive anti-trust legislation in the Philippines” and that existing laws are confined to prohibiting combinations, arrangements and practices in restraint of trade.

It added that “the fear raised by various parties that the share-swap deal is against public interest and consumer welfare is premature and unfounded at this time.”

The committee pointed out that no rate adjustments or reduction in benefits or types of services being provided by Digitel-Sun Cellular have happened as a result of the share-swap deal Should there be any adjustments, the committee said the National Telecommunications Commission has sufficient regulatory powers to address these to protect public interest and consumer welfare.

Source: Senate committee upholds validity of PLDT-Digitel share swap deal | The Manila Bulletin Newspaper Online

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FVR warns of PLDT-Digitel deal impact on public
Philippine Daily Inquirer
12:02 am | Thursday, August 25th, 2011

I can't post the whole article here because of copyright restriction. Please refer to the source link below. Thank you.

Source: http://business.inquirer.net/14863/f...pact-on-public

[alex-24]

ana jud na ang business if u cant beat them buy them hehehehehe

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Palace in no hurry deciding on PLDT-Digitel merger
AMITA O. LEGASPI, GMA News
08/25/2011 | 08:14 PM

Malacañang on Thursday stressed that it sees no urgency in handing out a decision on the merger of two major Philippine telecommunication firms amid the Aug. 26 self-imposed deadline set by one of the firms.

“As far as I know, we are still studying the merger," presidential spokesman Edwin Lacierda said at a press briefing.

“We are going to study it based on what is good for the public interest; that is our paramount concern—what will serve the public interest and not the interest of any particular group," he added.

Earlier, Philippine Long Distance Telephone Co. (PLDT) chairman and chief executive officer Manuel Pangilinan said they may call off the acquisition of Digital Telecommunications Philippines Inc. (Digitel) if they cannot secure regulatory approval by Aug. 26.

The National Telecommunications Commission, the agency tasked to review the deal, is under the Office of the President.

“As far as I know, we did not impose on ourselves a deadline. We are studying it carefully, judiciously. It was a deadline imposed by Mr. Pangilinan," Lacierda said.

A different perspective

He said the government is looking at the merger from a perspective different from Pangilinan’s, stressing that they are not sure if they can come up with a decision before the business mogul's deadline.

He added that government needs to see all sides before coming up with a decision considering the number of issues surrounding the merger that still needs evaluation.

Asked what role President Benigno Aquino III has in making the decision, Lacierda said the Aquino was “looking at the merger also, he’s looking at the consequences, the repercussions, that’s why it has to be studied."

“We need further inputs as to the issues, we need further inputs as to the proposed response. We are identifying the issues concerning the merger and we are also looking at the proposed response," he said.

The NTC concluded its hearings on the joint application of PLDT and Digitel for the approval of the P69.2 billion share-swap deal on July 18, but more than a month had passed and the regulator has yet to come up with a final decision. — JMT/MRT/VS, GMA News

Source: Palace in no hurry deciding on PLDT-Digitel merger - Business - GMA News Online - Latest Philippine News

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PLDT-DIGITEL MERGER
Gov’t to call Manuel V. Pangilinan’s bluff
By Christine O. Avendaño, Paolo G. Montecillo
Philippine Daily Inquirer
2:44 am | Friday, August 26th, 2011

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Source: http://newsinfo.inquirer.net/47883/g...2%80%99s-bluff

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NTC sets terms for PLDT-Digitel union
By: Cathy Yamsuan, Paolo G. Montecillo
Philippine Daily Inquirer
6:04 am | Thursday, August 25th, 2011

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Source: http://technology.inquirer.net/3661/...digitel-union/

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PLDT says no basis for Globe's petition to divest PLDT of some radio frequencies
By Mary Ann LL. Reyes (The Philippine Star) Updated August 26, 2011 12:00 AM

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Source: PLDT says no basis for Globe's petition to divest PLDT of some radio frequencies - The Philippine Star » News » Business

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Aquino: No to monopoly in telco
By: Christine O. Avendaño
Philippine Daily Inquirer
11:32 pm | Monday, August 29th, 2011

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Source: Aquino: No to monopoly in telco | Inquirer Business