PLDT to buy 51% stake in Sun Cellular operator Digitel

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

PLDT is set to buy 51.5% of shares from Digitel amounting to P74.1 billion, and will offer P69.2 billion worth of new shares at P2,500 each to JG Summit Holdings, mother company of Digitel.

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. — TJD, GMA New
PLDT to buy 51% stake in Sun Cellular operator Digitel - Business - GMA News Online - Latest Philippine News

PLDT to buy 51.55% of Digitel | ABS-CBN News | Latest Philippine Headlines, Breaking News, Video, Analysis, Features

[samsungster]

JG SUMMIT TO ACQUIRE STAKE IN PLDT IN ALL-SHARE TRANSACTION
• JG Summit to acquire shares in PLDT in exchange for its entire holdings in Digitel
• Transaction to have an equity value of P74.1 billion
• Consumers to benefit from wider and complementary array of products and
improved quality of service
• Paired networks to accelerate continued expansion of broadband rollout and other
next-generation technologies in both fixed and wireless space
MANILA, Philippines : 29th March 2011 - JG Summit Holdings, Inc (“JGS”) (PSE:JGS)
and Philippine Long Distance Telephone Company (“PLDT”) (NYSE: PLDT) (PSE: TEL)
announced that at meetings held earlier today, their respective Boards of Directors
approved the acquisition by PLDT of JGS’s and certain other parties’ ownership interest
in Digital Telecommunications Philippines, Inc. (“Digitel”) (PSEGTL), comprising (i)
3,277,135,882 common shares in Digitel, representing a 51.55% equity stake; (ii) zerocoupon
convertible bonds issued by Digitel and its subsidiaries to the JGS Group which
are assumed to be convertible into approximately 18.6 billion shares of Digitel by 30
June 2011; and (iii) intercompany advances of P34.1 billion made by the JGS Group
and certain of such parties to Digitel and its subsidiaries (the “Assets”).
Terms of the Transaction
The agreed consideration for the Assets is P69.2 billion which will be settled by the
issuance of one (1) new PLDT share for every P2,500 consideration payable for the
Assets. PLDT will be required as well to undertake a mandatory tender offer for all the
remaining common shares of Digitel held by minority shareholders. The tender offer
price for Digitel shares will be P1.60 per share, which will be paid in the form of either
PLDT shares issued at P2,500 per share or cash, at the option of the Digitel
shareholder. This is equivalent to the fully diluted price per share of the consideration
net of the value of the intercompany advances. Should all the minority shareholders of
Digitel accept the offer by PLDT, PLDT will issue a total of 29.65 million new shares,
representing 13.7% of the enlarged share capital of PLDT. Assuming full acceptance by
the minorities of Digitel, the total transaction consideration would be P74.1 billion.
This transaction is intended to be completed by the end of the second quarter of 2011.
JG Summit is expected to own approximately 12.8% of PLDT’s enlarged share capital
post the transaction. A representative of JGS is expected to join the Board of Directors
of PLDT.
Strategic Rationale and Benefits
This transaction is expected to achieve substantial benefits for the consumers, the
general public and the shareholders of PLDT and JGS. It will leverage the combined
expertise of the PLDT Group and Digitel to create a more capable telecommunications
company which will be better-positioned to provide higher quality and even more.

Press Statement: JG Summit on a P74.1B share swap giving up Digitel for PLDT stake - philippinedailyinquirer's posterous

[odzk]

wala na, bacn next time globe na sd kan.un sa pldt, nya balik na sd og monopoly. hayz.

[istorya.net]

sus saon nalang kung PLDT na pud tanan ang atong telecom provider..

[odzk]

parehas sa una, overpriced and under quality service.

[dammy]

ang government pa unta mo take over unya kita mga citizen mag pakabana para sa atung kaa-uhan. asa man ning atong dost og atong ntc ga hulat lang na cla sa panahon mo retire nga mag dawat nalng ug pension nga walay gi buhat para sa filipino, nga anha unta angay tagaan cla pension nga katoh nag serve ug tarung para sa atung ugma. kita mga citizen naa man ta ma buhat tingug para sa atung ugma. hehe im just carried away... peace.

[dv1000]

end of the unli wars coming........

[netcommando]

lets' just wait what will happen next... sayo ra kaau ng inyo speculations...

what if kun ang unli dili sa sun lang, what if apil na ang smart, tnt, red... o diba alegre...

basin lang, basin lna ang,,, lols!

[samamar21]

goodbye unlimited!!!

[samsungster]

PLDT-DIGITEL DEAL
End of unlimited calls, texts feared

Filed Under: Telecommunications Services, Consumer Issues, Company Information, Mergers - Acquisitions - Takeovers, Internet, Antitrust Issues, mobile phones
MANILA, Philippines—The return of telecom duopoly in the country can shore up profits for leading players Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom and may spell cutbacks in the industry’s offering of unlimited voice and text messaging services to consumers, lawmakers said Wednesday.

PLDT recently signed a share-swap deal that will allow it to take majority control of Gokongwei-led Digital Telecommunications, whose cheap services through the Sun Cellular brand have gnawed sharply at the profitability of traditional leaders PLDT and Globe Telecom.

The stellar rise in the stock prices of PLDT and Globe Telecom after the deal was announced indicated a growing perception that with Digitel now out of the way, the two companies can now collect higher prices for their services.

End of unlimited calls, texts feared - INQUIRER.net, Philippine News for Filipinos