NOW Telecom complies with ownership requirements

MANILA, Philippines — NOW Corp. has approved a share-for-share swap transaction with the shareholders of NOW Telecom Co. Inc. for an additional 11 percent equity in its affiliate company which holds a congressional franchise.

NOW’s board of directors has been granted authority by its shareholders to finalize the swap price per share of the transaction.

NOW Telecom earlier said its board of directors approved to swap an additional 11 percent which will increase NOW Corp.’s share in NOW Telecom to 30 percent.

NOW Corp. currently owns 19 percent of NOW Telecom through a share-swap that was implemented in February 2009.

The transaction is seen satisfying the congressional franchise requirement for NOW Telecom to have the public own at least 30 percent of the company.

NOW Telecom renewed its congressional franchise on Feb. 22, 2018, for another 25 years of operations, under Republic Act 10972.

“As stated by NOW Telecom, it is mandated to satisfy its recently renewed congressional franchise (Republic Act 10972) requirement of a minimum 30 percent public ownership. By offering an additional 11 percent to NOW Corp., NOW Telecom will satisfy its mandate,” the publicly listed company said.

NOW Corp. has set off its expansion program for fiber air after successfully providing internet connectivity solutions for enterprises, government agencies, commercial and residential buildings since its maiden launch in 2015.

To date, the company has engaged with business partners to expand its presence in several regions including Southern Tagalog and Central Luzon.

With its coverage blanketing Metro Manila, it has become one of the fastest growing broadband service providers and the first in the market to roll out next generation networks in the country.

As part of its aim to expand its presence outside Mega Manila and to strengthen the economy in the countryside, NOW has introduced “Network ng Mamamayang Pilipino” model which provides opportunities for regional entrepreneurs to bring the fiber air technology to areas that are underserved and unserved.