MANILA, Philippines — Philippine Telegraph & Telephone Corp. (PT&T), a company keen on bidding for the third telco player slot, is set to more than quadruple its authorized capital stock from P3.8 billion to P15.6 billion.
PT&T yesterday said its board of directors approved the increase in authorized capital stock of the company.
The capital increase will be submitted to stockholders for their approval in a meeting scheduled on Sept. 14.
PT&T said the capital hike would allow it to secure additional funds and investments for its operations.
The company is keen on bidding for the third telco slot as well as making further investments in the fixed broadband business.
It earlier secured approval for a proposed early exit from a court-assisted corporate rehabilitation.
Part of the compliance for the rehabilitation plan, which was approved in 2011, is for PT&T to conduct a stockholders’ meeting to increase its authorized capital stock that will allow the company to pay its debt through debt-to-equity conversion.
PT&T holds a 25-year franchise which allows the company to establish, maintain, and operate both wired and wireless telecommunications systems for domestic and international communication in the country.
Its existing network and infrastructure, spanning over 1,000 kilometers of pure fiber optic cables, allow PT&T to easily meet the network demands of customers in the Greater Manila area, northern and southern Luzon and Cebu regions.