JG Summit won’t join PLDT buy-in

JG Summit Holdings Inc., the holding company of the Gokongwei family, yesterday said it will not participate in the move of its chairman John Gokongwei Jr. to acquire controlling interest of the Philippine Long Distance Telephone Co. (PLDT) and Bonifacio Land Corp. (BLC).

Gokongwei’s personal lawyer Perry Pe explained, however, that the move, reached by JG Summit’s board of directors yesterday, was only reached to avoid any adverse impact of the deal on the stock prices of JG Summit, which is listed in the Philippine Stock Exchange.

Pe also confirmed that the decision does not rule out the possibility that JG Summit would enter the scene "once the dust settles" on the hostile takeover that is being opposed by the top PLDT management.

The lawyer cited the case of Singaporean firm United Industrial Corp. which Gokongwei purchased only in his personal capacity. After six months, however, JG Summit came in as an investor.

He clarified that there is still no decision on which corporate vehicle Gokongwei would use to acquire a 24.4 percent stake in PLDT and a 50.4 percent interest in BLC from Hong Kong-based First Pacific Co. Ltd., owned by the Salim group of Indonesia.

First Pacific is barred from entertaining other prospective buyers for its controlling interest in the two firms until Sept. 30 this year but the so-called exclusivity period can be extended by mutual agreement, Pe said.