Philippine Long Distance Telephone (PLDT) is considering delisting two subsidiaries by next year, the company confirmed in an email to TelecomFinance. The move would include delisting recently-acquired Digital Telecommunications Philippines…
Philippine Long Distance Telephone (PLDT) is considering delisting two subsidiaries by next year, the company confirmed in an email to TelecomFinance. The move would include delisting recently-acquired Digital Telecommunications Philippines (Digitel).
PLDT chairman Manuel Pangilinan was quoted saying in a media report that it would be better to only have the main company, PLDT, listed.
On 26 October, PLDT completed its acquisition of a 51.55% stake in number three player Digitel for PhP69.2bn (US$1.6bn).
In the email, PLDT explained that its ownership in Digitel will increase to approximately 87% once it converts zero-coupon bonds and shareholders advances. PLDT is planning to launch a tender offer for the remaining stake.
Under Philippine Stock Exchange (PSE) rules, companies can voluntary delist if 95% of outstanding shares are held by a majority shareholder, the company pointed out.
It also said that PSE, after a grace period, will delist the company if the minimum public float is less than 10%.
The other company to be delisted is PLDT Communication and Energy Ventures (PCEV). The company used to be a telco before its assets were transferred to Smart Communications, another subsidiary of PLDT.
PCEV is now a holding company for some of the Manila Electric Company’s (Meralco’s) shares. It is 99.5%-owned by Smart, while the remaining interest is split between several retail shareholders.
In the email sent to TelecomFinance, PLDT said: “As there are no plans to expand public ownership of both PCEV and Digitel, we would seriously consider delisting both companies, either voluntarily or involuntarily.”
