MERGED: Smart buys Digitel (Sun Cellular)

[Eve's Apple Project]

when giants merge, who can challenge them?

the government can bai.. the US recently did it. well, we are not the US so, we are going down the drain..Goodluck nalng nato ani..who said they are not going to get rid of the "unli'? lets just wait & see coz i seriously doubt that they'll keep their word.. Hurray for the brillant politicians we have.. thanks for protecting "your" interests..

[ong76win2]

Legislators mull TRO, review of PLDT-Digitel merger
Wednesday, October 26, 2011

MANILA -- Lawmakers representing the Bayan Muna party-list are considering to file a temporary suspension and a review of the merger of the Philippines' first and third largest telecommunications companies.

Party-list legislators are eyeing to file a motion for certiorari with injunction and a temporary restraining order (TRO) at the Supreme Court (SC) in connection with the approval of the merger of two telecommunications firms.

On Wednesday, the National Telecommunications Commission (NTC) allowed PLDT to acquire a 51.55 percent stake in Digital Telecommunications Philippines Inc. (Digitel), the owner of the Sun Cellular brand.

“We have yet to get a copy of the NTC order allowing the merger of PLDT and Digitel under Manny Pangilinan, but among the options we are studying is to file a motion for certiorari with injunction and TRO at the Supreme Court considering that the SC issued a ruling declaring the ownership of PLDT unconstitutional due to the fact that the majority shares of the company is foreign owned,” Bayan Muna Representative Teddy Casiňo said in a text message.

The SC has earlier ordered the Securities and Exchange Commission (SEC) to investigate the PLDT for a possible violation of the constitutional limit on foreign ownership of public utilities.

The SEC, however, has not taken action as the High Tribunal has yet to finalize its ruling pending the appeal of PLDT officers. (Kathrina Alvarez/Sunnex)

Source: Legislators mull TRO, review of PLDT-Digitel merger | Sun.Star

[ong76win2]

PLDT secures NTC nod on Digitel deal, grows mobile base to 62.8M
10/27/2011 | 06:06 AM

A new day dawns on Philippine Long Distance Telephone Co. (PLDT) and JG Summit Holdings Inc. after they secured regulatory approval of their P69.2-billion share-swap deal that gave PLDT a majority interest in Digital Telecommunications Philippines Inc. (Digitel).

The transaction cemented PLDT's position as the country's largest and most dominant telecommunications juggernaut.

Adding Digitel’s 15 million wireless subscribers to its own base of 47.8 million, PLDT now has 62.8 million mobile subscribers. PLDT also grew its fixed line business to 4.5 million with the addition of Digitel’s 450,000 working lines and 600 regional and local exchanges.

The National Telecommunications Commission (NTC) on Wednesday approved the transfer to PLDT of 51.55 percent interest in Digitel, according to the telecom firms’ joint statement.

PLDT to divest itself of CURE

NTC’s nod came with some sacrifice for PLDT. That price is wholly owned subsidiary, Connectivity Unlimited Resources Inc. (CURE), which carries the Red Mobile brand and owns 10MHz of 3G frequencies in the 2100 band.

The NTC approved the CURE divestment. The NTC order provides that CURE will sell its Red Mobile business including its subscriber base, brand, and fixed assets to PLDT's main mobile unit — Smart Communications.

Afterward, Smart will sell all its rights and interests in CURE, “whose remaining assets will consist of its congressional franchise, the affected (3G) frequency, and related permits.

According to PLDT’s latest disclosures to the Philippine Stock Exchange, Red Mobile has 1.5 million subscribers – all prepaid. This subscriber base grew 100 percent in 2008, 386 percent in 2009 and 1,098 percent in 2010.

PLDT introduced Red Mobile in November 2008. CURE’s congressional franchise (Republic Act 9130) is valid until April 24, 2026.

Globe Telecom welcomes divestment

For its part, Globe Telecom — Smart's long-time rival and now its only remaining major competitor — welcomed PLDT's divestment of the affected 3G frequencies.

“The approval of the joint application with condition to divest PLDT’s 10Mhz 3G frequency is a progressive step for the NTC in promoting consumer welfare and fair competition." said Globe head of corporate legal services group Atty. Froilan Castelo in a statement sent to GMA News Online.

"The decision of the regulatory body upholds its support to the industry, ensuring equal opportunities among players to compete, and allowing consumers to enjoy quality services from their chosen service provider," Castelo added.

Details of the share-swap

“Together with 3.277 billion shares representing 51.55 percent of Digitel’s outstanding common stock, PLDT also acquired the zero-coupon bonds issued by Digitel Group to JG Summit," PLDT and JG Summit said in a statement released via the PSE.

The zero-coupon bonds were assumed to be convertible or exchangeable into 18.6 billion Digitel shares.

Under the transaction, PLDT also assumed the P34.1 billion in advances made by JG Summit to the Digitel Group.

In payment of the convertible bonds and the advances, PLDT issued 27,679,210 news shares of common stocks at P2,500 per share.

The share-swap deal gave JG Summit an estimated 12.9 percent of PLDT’s expanded outstanding common stock.

Edgardo Cabarios, NTC director for content carrier authorization division, told GMA News Online that the deal was “approved because it serves the public interest."

The merger will help reduce inter-network and text messaging rates, and this is “one way to encourage new players to join and compete in the market," Cabarios said.

En route to “largest buyout"

The deal also triggers a mandatory tender offer for the acquisition of the remaining 48.45 percent Digitel shares held by the public, and PLDT said it will soon announce the date for its tender offer.

The valuation of the Digitel and JG Summit assets — called Enterprise Assets — was approved by the Securities and Exchange Commission on July 29.

Should PLDT pursue the tender offer, Digitel shareholders will have an option to sell at P1.6033 per Digitel share or swap their holdings for PLDT common shares at a swap ratio of 1.559.28 Digitel shares for each new PLDT common.

The tender offer — if consummated —will bring the total transaction value to P74.1 billion, “making it the largest buyout in Philippine corporate history," said PLDT and JG Summit in the joint statement.

On June 21, before the valuation of the Enterprise Assets were approved, the SEC issued a confirmation that PLDT may close the main transaction with JG Summit before closing the tender offer.

Digitel 'remains in good hands'

In a separate statement also issued via the stock exchange, PLDT chair Manuel V. Pangilinan said “PLDT is extremely pleased to welcome Digitel to the PLDT Group. PLDT will continue to provide its consumers with the best value in terms of price, quality and range of products and services and we have committed to continue offering ‘unlimited’ type of services in fulfillment of this promise. In addition, Sun subscribers can benefit from PLDT’s extensive infrastructure and varied service offerings."

“This transaction ensures that Digitel remains in good hands. Together, the PLDT-Digitel Group will be well-positioned to compete not only with formidable existing competitors but with well-funded new entrants as well," JG Summit chair James L. Go, said in the same statement. — With a report by AM Marzona/VS/TJD/ELR, GMA News

Source: PLDT secures NTC nod on Digitel deal, grows mobile base to 62.8M - Business - GMA News Online - Latest Philippine News

[ong76win2]

NTC okays landmark PLDT-Digitel deal
By Mary Ann LL. Reyes (The Philippine Star) Updated October 27, 2011 12:00 AM

MANILA, Philippines - One of the country’s most celebrated and contested business deals finally survived its biggest hurdle after the National Telecommunications Commission (NTC) gave yesterday its “conditional” approval to the acquisition by telecommunications leader Philippine Long Distance Telephone Co. (PLDT) of an initial 51.55 percent stake worth P69.2 billion in Digital Telecommunications Phils. Inc. (Digitel).

The approval, which was handed down exactly six months after PLDT and Digitel filed their joint application, is subject to certain conditions, including the sale of a PLDT subsidiary in a public bidding. Both PLDT and Digitel have signified their acceptance of the conditions contained in the ruling.

PLDT chairman Manuel V. Pangilinan, in a text message to The STAR, said: “A very good day. Digitel and San Beda championship done. Mission accomplished.”

Pangilinan is financially supporting the San Beda collegiate basketball team which clinched yesterday its back-to-back NCAA championship.

“PLDT is extremely pleased to welcome Digitel to the PLDT Group. PLDT will continue to provide its consumers with the best value in terms of price, quality and range of products and services and we have committed to continue offering ‘unlimited’ type of services in fulfillment of this promise. In addition, Sun Cellular subscribers can benefit from PLDT’s extensive infrastructure and varied service offerings,” he said in a statement.

JG Summit chairman James Go, in a separate statement, pointed out that the transaction ensures that Digitel remains in good hands. “Together, the PLDT-Digitel Group will be well-positioned to compete not only with formidable existing competitors but with well-funded new entrants as well,” he said.

Meanwhile, JG Summit president and CEO Lance Gokongwei, also in a text message to The STAR, said: “We believe that under the ownership of PLDT, we have created a great future for all Digitel and Sun Cellular team members, business partners, and most importantly, customers. We at the JG Summit Group want to continue to provide support and value to the entire PLDT enterprise.”

JG Summit owns the Digitel stake purchased by PLDT. The transaction, which involves the issuance of new PLDT shares, will entitle JG Summit to a board seat in PLDT with an eight percente economic interest.

Globe Telecom, the main oppositor to the PLDT-Digitel deal, through its head of corporate legal services Atty. Froilan Castelo, said the approval of the joint application with condition to divest PLDT’s 10Mhz 3G frequency is a progressive step for the NTC in promoting consumer welfare and fair competition.

He said that given the length of time this deal has been discussed by several authorities in the government, the media, and private sector, the decision of the regulatory body upholds its support to the industry, ensuring equal opportunities among players to compete, and allowing consumers to enjoy quality services from their chosen service provider.

In order to ensure that public interest will not be prejudiced by the sale of Digitel to PLDT, the NTC required PLDT to continue with Digitel’s unlimited call and text messaging services to the public. Digitel is the 100 percent owner of Digitel Mobile Philippines Inc., which owns the Sun Cellular brand.

NTC commissioner Gamaliel Cordoba earlier told The STAR that requiring PLDT to convert Sun Cellular’s “unli” offerings, which are presently only promos and therefore offered for limited periods, into permanent offerings will ensure that public interest will not be prejudiced by the PLDT-Digitel transaction.

Another conditionality imposed is that PLDT will divest itself of subsidiary Connectivity Unlimited Resources Enterprise (CURE), with the latter’s franchise, telecommunications frequencies, and related permits to be later sold through an NTC-supervised competitive public bidding among duly enfranchised and qualified public telecommunication entities (PTEs).

The divestment of CURE, which owns much-sought-after10 Mhz of 3G frequency in the 2100 band, will follow a plan which is detailed in the NTC decision and was the subject of earlier negotiations between the regulator and PLDT.

Under the plan, CURE will sell its Red Mobile business to PLDT wholly-owned mobile subsidiary Smart Communications consisting of its subscriber base, brand and fixed assets. Smart will then sell all of its rights and interests in CURE whose remaining assets will consist of its congressional franchise, the affected frequency, and related permits.

PLDT will have nine months to effect the orderly migration of CURE’s customers as well as an orderly transfer or CURE’s assets to Smart with the least disruption and degradation of service to CURE’s existing customers. The transition period will be reckoned from the date of promulgation of the decision.

The divestment will be made under the supervision and control of the NTC and will be effected through a competitive bidding among PTEs. A minimum price will be prescribed to allow Smart to recover its investment in acquiring, developing and operating CURE.

In case the actual proceeds from the sale exceed the cost recovery amount, PLDT will pay the NTC as fee for supervising the divestment sale, at least 50 percent of such excess less government fees and taxes payable as a consequence of the sale.

The divestment according to the NTC decision, will be conducted within six months after the transition period provided the decision shall have become final and executory. If the implementation of the sale is delayed by reason of any appeal or legal challenge against the decision, CURE will continue to pay spectrum user’s fee and other related fees which will form part of the cost recovery amount.

The NTC added that while the divestment is pending, the PLDT Group will not use the affected frequency.

The third requirement set by the NTC is that PLDT and Digitel shall continue to provide high quality service to their subscribers/users.

PLDT said that following the NTC’s approval, the parties can now proceed to complete the transaction and allow Digitel to have access to the expertise and resources of the PLDT Group so that Digitel can deliver even better, more expensive, and affordable communications services to its customers.

Meanwhile, PLDT announced that at meetings held yesterday by the respective boards of directors of Digitel and Digitel Mobile Philippines Inc. (DMPI), Pangilinan was appointed as chairman while Orlando Vea was appointed as president and chief executive officer.

Source: NTC okays landmark PLDT-Digitel deal - The Philippine Star » News » Business

[lorongboi]

paksit ta ani...hinay hinay pamutos...

[leo_trams]

sayon ra ni...

dont use cellphones, dont buy load....nahimo man gani sa una nga walay cellphone hehehe
dont forward unnecessary messages, like jokes, rumors, news, love qoutes, hi, hellos, etc.
imagine 1billion text messages in one day sa Pilipinas...95% is mostly unnecessary text messages.

.

[lorongboi]

unsa kaha mahitabo ani sa mga empleyado sa digitel? retrenchment guro mahitabo ani. pagkapait!!!

[NARRA]

ang akung nadunggan sa Digitel kay ang mga contructual ra ang ipabilin pero ang regular up to the highest position maoy tangtangon.

Ang PLDT/Smart kay naka 4th batch na sila sa ilang retrenchment since 2009 pa then gipulihan na nila ug mga contractual.

Ang dakung pangotana ani kung ang Globe makasugakod ba kaha makipagsabayan sa PLDT group considering mga karaan na ang mga empleyado unya gamay ra ila market share, only 30%?

Akung duda ani paubsan nig maayo ni MVP ang presyo sa Sun para mubalhin ang Globe subscriber nila.

Lets Wait and See....

[lorongboi]

ang akung nadunggan sa Digitel kay ang mga contructual ra ang ipabilin pero ang regular up to the highest position maoy tangtangon.

Ang PLDT/Smart kay naka 4th batch na sila sa ilang retrenchment since 2009 pa then gipulihan na nila ug mga contractual.

Ang dakung pangotana ani kung ang Globe makasugakod ba kaha makipagsabayan sa PLDT group considering mga karaan na ang mga empleyado unya gamay ra ila market share, only 30%?

Akung duda ani paubsan nig maayo ni MVP ang presyo sa Sun para mubalhin ang Globe subscriber nila.

Lets Wait and See....

legal ba na nga tangtangon ang usa ka regular na empleyado nya pulihan ug contractual?

[luigie2x]

lisod na ni dujh. pero naa man lang gihapon ang sun karon