PLDT sees no new investments, acquisitions in the short term

Philippine Long Distance Telephone Co. (PLDT) has no plans of making any new investments or acquisitions in the short term as it remains committed to its twin priorities of debt repayment and restoration of common dividends.

In a disclosure to the Philippine Stock Exchange, PLDT said that while company chairman Manuel Pangilinan has always been interested in exploring other businesses which complement the dynamic telecommunications industry, any discussions regarding an investment in a broadcast network, particularly GMA Network Inc., are merely exploratory.

Pangilinan earlier said he remains interested in acquiring a controlling stake in GMA 7 as part of PLDT’s convergence strategy

which involves a marriage of transport (PLDT’s network) and content (to be provided by a broadcast company).

However, the owners of GMA 7, in particular the Duavits and Gozons who own a combined 65 percent, said they are not interested in selling to the PLDT group but are instead eyeing a public listing of the country’s second largest broadcasting network.

They hope to raise about P9 billion from selling 20 to 30 percent of GMA to the public. Sources told The STAR that the Jimenezes, who control the remaining 35 percent of GMA 7, are likewise not amenable to selling their stake at this time.

Pangilinan earlier made a pitch for Associated Broadcasting Corp. (ABC-5) but during that time, the former owner Edward Tan was not keen on selling. Tan however sold the station to the group of Antonio ‘Tonyboy’ Cojuangco last year at a price much lower than what Pangilinan or the RFM group were offering.

A few years back, PLDT and GMA 7 signed a memorandum of understanding calling for a sale of a controlling stake in the network. PLDT however withdrew from the deal and decided instead to utilize its resources to settling its burgeoning maturing debt problem.

Meanwhile, the PLDT board in its June 8 meeting approved the payment of cash dividends of $1.03 per outstanding share of the company’s Series 3 convertible preferred stocks payable on July 15, 2004 to holders of record as of June 25, 2004.

Also approved was the payment of cash dividends amounting to P4.675 per share for PLDT Series 5 convertible preferred share, $0.09925 for Series 6 convertible preferred shares, and JY10.18 for Series 7 shares.

PLDT earlier announced that it will resume the payment of dividends to common shareholders next year, amounting to about 10 percent of 2004 net earnings.