Lance still upbeat on PLDT-Digitel deal

BEIJING (via PLDT) – JG Summit Holdings Inc. president Lance Gokongwei expressed optimism here that the merger between Digitel Telecommunications Inc. and Philippine Long Distance Telephone Co. (PLDT) would still push through even if the target closing date for the deal had not been met twice.

Gokongwei, who is part of President Aquino’s business delegation in his state visit, said the deal would benefit Filipino landline and cellular phone users as it could bring down further telecommunication costs.

This was contrary to criticisms that the merger could lead to a monopoly and unfair competition. Aquino said the government would make sure that the decision would be in the interest of the public.

“We remain optimistic that the transaction makes sense. The deal as we have done fit will benefit the Filipino consumer,” Gokongwei said at the China World Hotel where the President spoke at a trade and economic forum to promote the Philippines as a much better investment site now as his administration would level the playing field to both local and foreign investors.

“We do believe that under the merged equity, we will improve services and expand our broadband,” he added.

He said they would return “to our boards what the next steps are.”

“It’s a very complex issue, nonetheless I think all parties, have to work at coming out with a solution. We’re both going back to our boards to decide,” Gokongwei said.

When asked if Digitel could do without the merger, Gokongwei said yes.

Last Aug. 26, when the self-imposed deadline set by both business groups lapsed without a decision from National Telecommunications Commission on their joint application for approval of the share swap, PLDT announced that it was in talks with Digitel on their next step. The target closing date for the transaction had twice been reset to from June 30 to July 31 to Aug. 26.