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PLDT acquires 51.55% of Digitel Philippines
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PLDT acquires 51.55% of Digitel Philippines

by Bon Francisco Talampas, Jr.March 30, 2011

The Philippine Long Distance Telephone Co. (PLDT) today acquired a 51.55% stake of the JG Summit Holding Inc. – Digitel Telecommunications Phils Inc. (Digitel). The transaction has an equity value of 74.1 Billion.

What’s in return?

JG Summit is expected to own approximately 12.8% of PLDT’s enlarged share capital post the transaction. And a representative of JGS is also expected to join the Board of Directors of PLDT.

According to Lance Gokongwei, president and COO of JG Summit the decision to sell  began two years ago, “It was a very difficult decision and we went to a very rigorous process of reviewing all our strategic options. After the process, we have concluded that PLDT was the best partner for our stakeholders, most especially for our Digitel and Sun Cellular subscribers.

 

What will happen to the subscribers?

Suncellular which was owned by Digitel will still keep the mobile operations without touching its current services particularly the “unlimited” promos. Manny Pangilinan, the chairman of PLDT said  “Essentially the organization of Digitel will remain intact. It is something that we wish to preserve including the integrity of the brand and pricing of services so that consumers will continue to benefit from it.”

What else?

Digitel’s fixed line operations can complement those of PLDT’s in terms of both geographic and population reach, while adding approximately 450,000 subscribers to PLDT’s current base of 1.8 million subscribers. PLDT can quickly provide enhanced broadband services in Digitel’s service areas. Digitel’s subscribers are also expected to benefit from PLDT’s extensive infrastructure, particularly its nationwide fiber optic network and its international cable and satellite facilities.

PLDT will also make available to Sun subscribers its wide range of service offerings particularly in terms of 3G and broadband.

 

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About The Author
Bon Francisco Talampas, Jr.
Bon Talampas, Jr. is a computer engineer, a former member of a technical team that supports a leading health care company. Prior to his stint abroad, he worked as an IT specialist and a university lecturer. Bon also holds an MBA. And aside from being a computer geek and DOTA fanatic, he spends most of his idle hours in blogging and photography. You can also read more about him at www.bonistation.com.