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.”
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.