PLDT to acquire Philcom via debt-to-equity swap

Philippine Long Distance Telephone Co. (PLDT), the country’s largest telecommunications company, will acquire Philippine Global Communications (Philcom) through a debt-to-equity swap.

In a disclosure to the Philippine Stock Exchange, PLDT said it signed last Jan. 2 an agreement with PremierGlobal Resources Corp. to acquire 100 percent of Philcom’s outstanding obligations to suppliers, banks and other financial institutions for P340 million.

These obligations were acquired by PremierGlobal from Philcom’s lenders.

PLDT said it also entered into an agreement with   Philcom whereby the latter shall transfer its rights and all shares of common stock in favor of the telecommunications giant in a deal valued at P75 million. 

PLDT said it would file in due course the necessary application/petition for the approval of the transaction by the National Telecommunications Commission.

“Since Jan. 16, 2004, the company has been managing/operating the fixed line facilities of Philcom pursuant to an advisory and management services agreement,” PLDT said.

PLDT said the acquisition will allow it to further expand its presence in Mindanao where it already has operations carried out under PLDT-Maratel Inc. and Smart Broadband Inc.

“This expanded presence is expected to benefit not only the existing subscribers in the area, but provides the communities in the area an opportunity to access improved telecommunications facilities,” PLDT said.

Philcom operates in the provinces of Agusan del Norte, Agusan del Sur, Basilan, Bukidnon, Camiguin, Davao del Norte, Davao Oriental, Misamis Oriental, Surigao del Norte and Surigao del Sur. It has 16 local exchanges in Mindanao, including Cagayan de Oro, Panabo and Butuan City.

It has 26 interconnection agreements and more than 16 overseas correspondent relationships which include PLDT, Globe Telecom Inc., Smart Communications Inc., Bayan Telecommunications Inc., Eastern Telecommunication Philippines Inc., Digital Telecommunications Philippines Inc., Bell Telecoms, Next Mobile and Express Telecom.

Philcom’s connection abroad includes countries like Australia, Canada, Saudi Arabia, Taiwan, the United States, Singapore, Malaysia, Korea, Hong Kong, Japan, Indonesia and Thailand.

Philcom’s products include Voice Connect Direct Access, which is dedicated to private telephone lines, a service that provides connection for large volume of domestic and international long-distance traffic.

PhilCom also offers Internet access, providing customers with the required bandwidth to connect to the Internet utilizing any form of last mile facility from domestic private line to wireless connection.