Qtel acquires 475-M Liberty Telecoms shares for P1.52B

Publicly-listed Liberty Telecoms Holdings has issued a total of 475 million preferred shares to Qatar Telecom (Qtel) for a consideration of P1.52 billion.

In May 2008, QTel, through wholly-owned subsidiary wi-Tribe Asia Ltd, acquired 27.12 percent of Liberty.

In December 2008, 175.1 million and 300.8 million preferred shares were issued in favor of wi-Tribe and White Dawn Solution Holdings, respectively, at an issue price of P3.20 for a total of P1.52 billion.

The method used for payment was conversion of loans and payables of Liberty into equity

With the acquisition by QTel, Liberty’s issued and outstanding shares has increased to 1.77 million from a previous 1.3 million shares out of a total authorized capital stock of two million shares.

According to Liberty, wi-Tribe now owns 9.9 percent while White Dawn holds 17 percent of the local telecommunications company. wi-Tribe is a joint venture of Qtel, the exclusive telecommunications service provider in Qatar, and A.A. Tukri Group of Companies (ATCO) of Saudi Arabia. Qtel has a 78-percent stake in this overall venture.

Some sources are saying that QTel now actually owns 34 percent of Liberty.

Beverage and food conglomerate San Miguel Corp., meanwhile is reportedly interested in acquiring 60 percent of Liberty. San Miguel vice chairman and president Ramon Ang confirmed there were negotiations but refused to give details.

A spokesperson for Liberty Telecom said San Miguel had affirmed its investment interest, but added that the negotiations were “confidential.”

Ang had been elected as Liberty’s new chairman, replacing Gabriel Dee who resigned shortly after taking over the post of longtime chairman Raymond Moreno.

Liberty has told the Philippine Stock Exchange it was increasing its capital stock by P4.8 billion.

It also said its board had approved a fixed valuation of P1.50 for the preferred shares until May 29, 2010, for any issuance by the corporation subsequent to an increase of 4.8 million preferred shares.

In April 2005, Liberty management suspended its operations for lack of capital needed to operate and grow the business. Four months later, it filed with the Makati Regional Trial Court a petition for rehabilitation.

For its part, SMC has confirmed that it is diversifying into the telecommunications industry as part of the food and beverage company’s efforts to go into non-core food businesses.

SMC is pursuing a joint venture with QTel to look into opportunities in the wireless broadband, mobile and mobile broadband businesses in the Philippines.

“San Miguel believes that the Filipino consumer will be the ultimate beneficiary of its intended investments since customers will now have access to a reliable service provider offering affordable high speed wireless broadband and communication solutions,” SMC has said.

SMC however did not give additional details about the partnership with QTel. Sources have said SMC would team up with QTel in beefing up cash-strapped Liberty.