PLDT unit eyes control of BusinessWorld, happy with stakes in STAR, Inquirer

MANILA, Philippines - Mediaquest Holdings Inc., the media arm of dominant carrier Philippine Long Distance Telephone Co. (PLDT), is looking at taking control of BusinessWorld as it is satisfied with its interest in The Philippine STAR and the Philippine Daily Inquirer.

Ray Espinosa, outgoing president of Mediaquest after being kicked up to the First Pacific Co. Ltd of Hong Kong, said in a text message to The STAR that the company is focusing on increasing its 30 percent interest in BusinessWorld.

“We are already happy with our stakes in The Philippine STAR and the Philippine Daily Inquirer. We are focusing our attention on the financial requirements of BusinessWorld,” Espinosa stressed.

He pointed out that BusinessWorld is a “venerable” brand and Mediaquest is committed to finding the appropriate solution that would restore its financial health.

BusinessWorld Provident Fund that controls 70 percent of the newspaper has finally agreed to issue new shares to Mediaquest after adopting a single “no-vote” provision wherein a no vote from any of the fund’s members would prevent any third party from acquiring its stake in the newspaper.

He said Mediaquest has been evaluating several funding options for BusinessWorld and one of the options is to acquire new shares of the company but the extent of the investment would depend on the funding requirements of the company for this year and next year.

“This may have to be done in combination with the purchase of shares held by the company’s retirement fund in order for it to have money for its retirement liabilities. All these options are being seriously evaluated by Mediaquest and it will choose the option that will best respond to the needs of all stakeholders,” he added.

According to him, Mediaquest could take control of BusinessWorld depending on the funding needs of the company and the transaction could be consummated as soon as possible.

“A controlling stake may be inevitable given the total funding requirements of the company. The funding needs of the company are quite urgent and we are striving hard to reach a solution acceptable to all stakeholders at the soonest possible time,” he said.

Aside from its 30 percent interest in BusinessWorld, Mediaquest also owns 20 percent of The Philippine STAR and 18 percent of Philippine Daily Inquirer.