PLDT eyes acquisition of more telecommunications companies

MANILA, Philippines - Philippine Long Distance Company (PLDT) remains in talks for possible investments in telecommunications companies (Telcos) both here and within the region, the company’s top official said.

PLDT group chairman Manuel Pangilinan said looking at the telco values in the region which have dropped at rates much larger than those of PLDT, there are definitely opportunities opening up in the region.

“We are taking a look at those opportunities now,” he revealed.

PLDT officials also revealed they are still pushing through with the launch this year of their direct-to-home (DTH) satellite television service, an alternative to cable TV service.

Pangilinan disclosed that the investments, which will be either outright acquisitions or equity investments, have not been firmed up and that they are in various degrees of discussion. He pointed out the investments will be made by PLDT, not by its parent Hong Kong-based conglomerate First Pacific Co. Ltd.

He cited opportunities opening up in India, where he said possible investment opportunities can range anywhere from $500 million to $2 billion.

He added that other opportunities are present in countries within the ASEAN region, but he did not elaborate, although he revealed that they are keen more on investing in the mobile business in the region.

Pangilinan said PLDT has been very selective and careful in terms of new investments last year. “Just because we have excess cash does not mean license to just invest. Our main objective is to raise shareholder value,” he explained.

He noted that PLDT has likewise been looking for opportunities to expand its presence within the country, preferring to acquire smaller province-based telephone companies that will help enlarge the company’s geographical reach especially on the fixed line side in areas where they not yet present or do not have significant presence.

PLDT earlier acquired Philcom Corp., a local telephone firm serving southern Philippines, shelling out P340 million to cover Philcom’s liabilities held by Premier Global Resources Corp. The debt agreement was inked last Jan. 2.

PLDT is likewise spending P75 million for the rights, title and interest in and to all of the shares and common stock of Philcom’s parent, Philippine Global Communications Inc.

The two transactions will result in PLDT owning 100 percent of Philcom.

The purchase of Philcom allows PLDT to reach a wider market in Mindanao, where PLDT already operates PLDT-Maratel and Smart Broadband.

 “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.

Parties involved in PLDT’s Philcom acquisition still need a transaction approval from the National Telecommunications Commission.

PLDT has been managing the fixed line operations of Philcom since 2004 under an advisory and management agreement with Philippine Global. Philcom has been indebted to PLDT since 2001 for roughly P2.2 billion.

PLDT has been in talks with Philcom creditors and shareholders for the restructuring of the Mindanao-based telco’s debts.

Philcom serves Daval Oriental, Davao del Norte, Misamis Oriental, Surigao del Norte, Surigao del Sur, Agusan del Norte, Agusan del Sur, Bukidnon, Basilan and Camiguin.