MERGED: Smart buys Digitel (Sun Cellular)

[Nelson28]

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diba gibabagan naman ni sa senado?

[ong76win2]

PLDT in talks with NTC on divestment of radio frequencies
By Mary Ann Ll. Reyes (The Philippine Star) Updated October 18, 2011 12:00 AM

MANILA, Philippines - The Philippine Long Distance Telephone Co. (PLDT) Group said yesterday it is in talks with the National Telecommunications Commission (NTC) regarding the possibility of divesting certain radio frequencies to pave the way for NTC’s approval of the proposed acquisition by PLDT of an initial 51.5 percent stake in Digital Telecommunications Phils Inc. (Digitel) from the JG Summit Group.

As part of a divestment plan being worked out between the PLDT Group and NTC, PLDT said it may surrender 10 megahertz of 3G (third generation of mobile communications technology) frequencies held by Connectivity Unlimited Resources Enterprise (CURE), a subsidiary of Smart Communications.

PLDT said it is aware of the concerns raised by government and certain oppositors regarding the group’s ownership of 3G frequency. “We would like to assure all the parties that it is not PLDT’s intention to accummulate the said frequency. Thus, in order to pave the way for the issuance of the NTC approval and completion of the acquisition transaction given the substantial public benefit it will create, PLDT is in discussions with NTC regarding the possibility of divesting frequency held by CURE,” it said

Even with this, PLDT maintained that there is no legal basis for government to recall any radio frequency held by the group.

“All radio frequencies held by the PLDT Group are being properly, effectively, and efficiently used to meet the demands of public service and all fees due on the assignment and use of such frequencies have been properly paid in a timely manner,” company officials said.

The NTC has 90 days under the Public Service Act from the time the last pleading was filed on July 27, 2011 to decide on the application, but sources noted that the decision is actually up to Malacañang.

An NTC official told The STAR that the 90-day period is not mandatory so that the commission can still decide before or even after Oct. 26, 2011.

PLDT said yesterday it firmly believes that the acquisition transaction will be beneficial to the public good and public service and that issue raised by government, the NTC and certain oppositors regarding radio frequency should not be an obstacle to the NTC’s approval thereof.

The PLDT Group has 25 mhz of 3G frequencies, 15 mhz of which is held by Smart and 10 mhz by CURE.

After the NTC failed to decide on the deal last Aug. 26, PLDT and JG Summit announced that they are in joint consultation as to whether the date for the finalization of the transaction shall be extended further.

“The two parties shall consult their respective boards of directors and make a formal announcement as soon as practicable,” PLDT said.

The original closing date of the acquisition deal, originally targeted for June 30 was twice extended – to July 30 and then to Aug. 26 due to prolonged disposition of the application for approval by the NTC.

Palace spokesperson Edwin Lacierda has said that Malacañang is still studying the deal.

For his part, NTC commissioner Gamaliel Cordoba said that they are still working on a comprehensive review of the transaction “as we want to ensure that our eventual decision is in conformity with existing laws and would promote the national interest.”

PLDT and Digitel filed their joint application for the approval of the sale to the former of an initial 51.55 percent of the outstanding shares of Digitel from the Gokongwei Group last April 27.

PLDT has already obtained the Securities and Exchange Commission’s confirmation of the valuation of the said Digitel shares, and convertible bonds and advances which PLDT will acquire in consideration of new shares of common stock to be issued by PLDT.

The company also stressed that the transaction would benefit the consuming public and support the “broadbanding the nation” initiative of the government. “We remain hopeful that the NTC approval is forthcoming,” it said.

Digitel is the 100 percent owner of Digitel Mobile Philippines Inc., which owns the brand Sun Cellular. It also has a substantial fixed line and broadband business.

Source: PLDT in talks with NTC on divestment of radio frequencies - The Philippine Star » News » Business

[ong76win2]

Hope we do get benefits with the merger as what PLDT said if both PLDT and Sun Cellular would merge.

[ong76win2]

PLDT takeover of Digitel: NTC sets condition
By Mary Ann LL. Reyes (The Philippine Star)
Updated October 24, 2011 12:00 AM

MANILA, Philippines - The National Telecommunica tions Commission (NTC) may require telecommunications leader Philippine Long Distance Telephone Co. (PLDT) to make Sun Cellular’s unlimited text and call promos a permanent offering as a condition for the NTC’s approval of PLDT’s acquisition of a 51.55 percent stake in Digital Telecommunications Phils. Inc. (Digitel).

Highly placed sources told The STAR that under the Public Services Act, any sale or transfer of shares of stocks by a public utility that will result in the transferee owning more than 40 percent must not prejudice public interest.

“To make sure that Digitel’s sale to PLDT will not prejudice public interest, and despite the fact that PLDT has already said that Sun Cellular’s unli text and call promos will remain, the NTC will ask PLDT to make these promos, which currently are available for a limited period, permanent,” the source said.

Digitel is the 100 percent owner of Digitel Mobile Philippines, Inc., which owns the brand Sun Cellular. It also has a substantial fixed line and broadband business.

In addition, PLDT and NTC are in discussions over a possible divestment by PLDT of the 3G frequencies held by its subsidiary Connectivity Unlimited Resourced Enterprise (CURE).

The NTC is expected to finally decide by next week on a joint PLDT-Digitel application seeking approval of the sale. The commission has 90 days or until October 26, 2011 or from the time the last pleading was filed to come up with a decision, although NTC said that the period is not mandatory.

NTC Commissioner Gamaliel Cordoba told reporters late last week that all the inputs needed in deciding on the controversial deal are already with the government, thus, giving it sufficient footing on the issue.

“All inputs that we need are already in. So, we already can [decide],” he said, but added that there is still no schedule on when an approval or denial will be issued on the PLDT-Digitel deal.

Cordoba said the 90-day period is just a “reasonable length of time” that will “guide” the regulators to evaluate the transaction and its effect on the telecommunications industry.

Thus, he said the regulator cannot be forced to either deny or approve the P69-billion deal at the end of the 90-day period.

According to Cordoba, an ideal telecom industry should have several players in order to protect the welfare of consumers.

“The more providers to choose from, the better for the public. If there are several players in the market, prices will go down and services will further improve because of competition,” he said.

Currently, there are only three cellular providers in the local telecoms industry that include PLDT’s wireless arm Smart Communications, Digitel’s Sun Cellular and Globe Telecom.

The acquisition of Digitel by PLDT in the latter cornering over 70 percent of cellular subscribers. PLDT, however, said

Digitel will be managed separately from PLDT and will retain its branding even after the acquisition.

PLDT said it is cognizant though of the concerns raised by government and certain oppositors regarding the group’s ownership of 3G frequency. “We would like to assure all the parties that it is not PLDT’s intention to accummulate the said frequency. Thus, in order to pave the way for the issuance of the NTC approval and completion of the acquisition transaction given the substantial public benefit it will create, PLDT is in discussions with NTC regarding the possibility of divesting frequency held by CURE,” it revealed.

Even with this, PLDT maintained that there is no legal basis for government to recall any radio frequency held by the group.

“All radio frequencies held by the PLDT group are being properly, effectively, and efficiently used by the groyp to meet the demands of public service and all fees due on the assignment and use of such frequencies have been properly paid in a timely manner,” company officials said.

PLDT said it firmly believes that the acquisition transaction will be beneficial to the public good and public service and that issue raised by government, the NTC, and certain oppositors regarding radio frequency should not be an obstacle to the NTC’s approval thereof.

The PLDT group has 25 mhz of 3G frequencies, 15 mhz of which is held by Smart and 10 mhz by CURE.

The original closing date of the acquisition deal, originally targeted for June 30 was twice extended - to July 30 and then to August 26 due to prolonged disposition of the application for approval by the NTC.

PLDT and Digitel filed their joint application for the approval of the sale to the former of an initial 51.55 percent of the outstanding shares of Digitel from the Gokongwei group last April 27.

“What should have been a straightforward summary proceeding turned into a protracted proceeding as Globe and other oppositors raised extraneous matters, including a grant of additional frequency assignments to Globe as well as IP peering, and even sought for the suspension of the proceeding and disapproval of the transaction, arguing that PLDT’s foreign ownership exceeds the constitutional limit on the basis of the Supreme Court’s decision in the Gamboa casem which has not even attained finality,” PLDT pointed out.

PLDT has already obtained the Security and Exchange Commission’s (SEC) confirmation of the valuation of the said Digitel shares, and convertible bonds and advances which PLDT will acquire in consideration of new shares of common stock to be issued by PLDT.

Source: PLDT takeover of Digitel: NTC sets condition - The Philippine Star » News » Business

[techguys]

PLDT says takeover deal approved


THE NATIONAL Telecommunications Commission (NTC) has reportedly approved Philippine Long Distance Telephone Co.'s (PLDT) take over of Digital Telecommunications Philippines, Inc. (Digitel) subject to certain conditions including the divestment of some frequencies, the dominant telco said in a disclosure to the local bourse on Wednesday.



PLDT and Digitel, for their part, "have manifested their acceptance of the conditions contained in the decision".
NTC could not be immediately reached to confirm this.

PLDT, citing an NTC order it received today, said it will be allowed to purchase 51.55% of Digitel as long as the Pangilinan-led telco sells the 10 megahertz of 3G frequencies along with other assets held by its unit Connectivity Unimited Resources, Inc. (CURE).

NTC will then supervise the bidding of the frequencies to "enfranchised and qualified public telecommunication entities", the disclosure read.

PLDT said it will be given nine months to put the frequencies and other CURE assets for sale, and the actual divestment must occur within six months after.

Sun Cellular operator Digitel, for its part, must "continue to provide nationwide 'unlimited' type of services to the public", the disclosure read.

Digitel was the most traded stock on the bourse as of 1pm, with prices up 0.65% from its opening position.

PLDT shares, meanwhile, were up by 1.04% to P2,330 apiece so far.

Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessWorld.

[Eve's Apple Project]

doomed.. gray sky is coming.. sila ray nalipay ani.. mura ra ni sila sa Big 3 sa Oil..kita nga mga consumer ang pildi..

[gareb]

when giants merge, who can challenge them?

[Eve's Apple Project]

lets thank our brilliant politicians..they are protecting "THEIR" interests & not ours..hahay, wa nay mahims.

[ong76win2]

PLDT says takeover deal approved


THE NATIONAL Telecommunications Commission (NTC) has reportedly approved Philippine Long Distance Telephone Co.'s (PLDT) take over of Digital Telecommunications Philippines, Inc. (Digitel) subject to certain conditions including the divestment of some frequencies, the dominant telco said in a disclosure to the local bourse on Wednesday.



PLDT and Digitel, for their part, "have manifested their acceptance of the conditions contained in the decision".
NTC could not be immediately reached to confirm this.

PLDT, citing an NTC order it received today, said it will be allowed to purchase 51.55% of Digitel as long as the Pangilinan-led telco sells the 10 megahertz of 3G frequencies along with other assets held by its unit Connectivity Unimited Resources, Inc. (CURE).

NTC will then supervise the bidding of the frequencies to "enfranchised and qualified public telecommunication entities", the disclosure read.

PLDT said it will be given nine months to put the frequencies and other CURE assets for sale, and the actual divestment must occur within six months after.

Sun Cellular operator Digitel, for its part, must "continue to provide nationwide 'unlimited' type of services to the public", the disclosure read.

Digitel was the most traded stock on the bourse as of 1pm, with prices up 0.65% from its opening position.

PLDT shares, meanwhile, were up by 1.04% to P2,330 apiece so far.

Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessWorld.

Source: PLDT says takeover deal approved | BusinessWorld Online Edition

[ong76win2]

PLDT, JG Summit close P69.2-B Digitel deal
10/26/2011 | 02:16 PM

(Updated 4:55 p.m.) Philippine Long Distance Telephone Co. (PLDT) and JG Summit Holdings Inc. on Wednesday said the P69.2-billion share-swap deal that gave PLDT a majority interest in Digital Telecommunications Philippines Inc. (Digitel) was concluded.

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

“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 Philippine Stock Exchange.

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.

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

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.

Mandatory tender offer

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.

CURE and 3G frequencies

To allay earlier concerns about unfair competition as a result of the acquisition, PLDT said it is prepared to free up 3G frequencies by divesting itself of its subsidiary, Connectivity Unlimited Resource Enterprises Inc. (CURE).

CURE, which carries the Red Mobile brand, also owns 10MHz of 3G frequencies in the 2100 band.

In exchange for allowing PLDT to consummate the deal, the NTC has approved CURE's divestment of its Red Mobile business including its subscriber base, brand, and fixed assets to PLDT's other unit — Smart Communications. In turn, Smart will sell all its rights and interests in CURE, leaving ownership of the affected 3G frequencies with CURE.

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. 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," said Globe head of corporate legal services group Atty. Froilan Castelo in a statement sent to GMA News Online.

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, GMA News<4b>

PLDT, JG Summit close P69.2-B Digitel deal - Business - GMA News Online - Latest Philippine News