PLDT unit sells Philweb stake for P4.31 B

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) yesterday completed the last tranche of a P4.31-billion transaction involving the sale of the entire stake of wholly-owned subsidiary ePLDT Inc. in Philweb Corp.

PLDT first vice president Melissa Vergel de Dios informed the Philippines Stock Exchange (PSE) that the PLDT Group has completed the sale of ePLDT’s 397.892 million common shares in Philweb to Philweb Casino Corp. (PCC) as contained in a share purchase agreement executed last July 10, 2012.

De Dios said the fourth and last tranche of the transaction involving 117.518 million common shares at P11.0264 per share for a total consideration of P1.296 billion was consummated via a special block sale at the Exchange yesterday.

She said the first transaction covering 93.457 million shares at P10.7 per share or P999.98 million was done last July 13, 2012 followed by the second tranche involving 93.457 million shares at P10.7 per share or P999.98 million last Oct. 19, 2012.

She added that the third tranche covering 93.457 million common shares priced at P10.8632 per share to include an adjustment of three percent per annum on top of the base price of P10.7 per share for a total consideration of P1.015 billion was completed last June 13.

The PLDT Group is pursuing its convergence strategy by expanding its presence in media conglomerates including the possible acquisition of GMA Network Inc. to beef up the operations of TV5 and its interests in print media including The Philippine STAR, the Philippine Daily Inquirer, and the BusinessWorld.

The Group booked a two-percent growth in net income to P29 billion in the first nine months of the year. The increase was traced to the P1.1 billion rise in core net income as well as the P2-billion gain from the sale of SPI Global that was offset by P2.4-billion net foreign exchange and derivative losses and the P1.3-billion adjustments in Philippine Accounting Standard (PAS) 19.

Consolidated service revenues of the PLDT Group likewise inched up by two percent to P121.6 billion as of end-September this year as revenues from mobile short messaging system (SMS), cellular domestic and local exchange carrier revenues inched up one percent to P73.1 billion while non-SMS data revenues grew 15 percent to P25.9 billion. National long distance, fixed international voice, cellular international voice and satellite revenues retreated by six percent to P22.6 billion.

PLDT chairman Manuel V. Pangilinan is confident that 2013 would be a turnaround year for the country’s largest telecommunications provider as the operating conditions in the first nine months have been favorable for the industry as a whole.