PLDT Inc. and Globe Telecom Inc. would shell out P364.94 million to acquire the remaining shares in Liberty Telecoms Holdings Inc. as a part of the latter’s plan to exit the local bourse.
The new owners of Liberty Telecoms through Vega Telecom Inc. are making the tender offer for up to 165.88 million common shares representing 12.82 percent of the issued and outstanding common stock held by the public for P2.20 per share or for a total of P364.94 million.
The offer period is set on Aug. 24 to Sept. 21, while settlement is on Oct. 31.
PLDT and Globe offered to buy the remaining shareholders after they each acquired 50 percent of Vega Telecom, a subsidiary of San Miguel for P69.1 billion. Vega Telecom owns Liberty Telecoms.
The purpose of the tender officer is for Liberty Telecoms to comply with the requirement for voluntary delisting of its common shares with the Philippine Stock Exchange.
“If Liberty Telecoms is delisted, its common shares will no longer be traded on the PSE and this could affect investors’ ability to liquidate their investments,” the company said.
The new board of directors of Liberty Telecoms has to approve the filing of a petition for the delisting of the company. subject to the approval of the PSE.
Vega Telecoms said it would continue the business of Liberty Telecoms and would review strategic options and take steps necessary to reduce and eliminate the current loss-making position of Liberty.
Liberty Telecoms posted a net loss of P158 million in the first half, lower than P427-million loss in the same period last year. The company’s revenues went down 14 percent to P127 million in January to June from P145 million in the same period last year.
Meanwhile, the National Telecommunications Commission is unlikely to recall the mobile frequencies acquired by PLDT and Globe Telecom from San Miguel even if the Philippine Competition Commission rejected the transaction.
“The agency that has the authority over spectrum is NTC. If you have the power to issue, you also have the power to recall. But any actions by the commission should study the impact on the public,” NTC deputy commissioner Edgardo Cabarios said.
Cabarios said the spectrum sharing would continue even if PCC rejected the transaction “unless the parties will write to the commission that they will stop the sharing of frequencies.”
“So, if you recall, what will happen? Naturally, it would affect public interest and public welfare. So that’s your problem,” he said.
Cabarios said the consumers were expected to see a significant improvement of the 700-megahertz frequency sharing before the end of the year.
The regulator earlier approved the co-use by Globe and Smart Communications of frequencies assigned to Bell Telecommunications Philippines Inc. on conditions the broadband and Internet access speed would improve in a year, with the companies required to submit a progress report on a quarterly basis.
Globe was allowed to use the 703-720.5/758-775.5 megahertz, 880-885/925-930 Mhz, 1710-1717.5/1805-1812.5MHz, 2380-2395 MHz and 2555-2595MHz.
Smart was assigned to use the 720.5-738/775.5-793 MHz, 885-890/930-935 MHz, 1717.5-1725/1812.5-1820 Mhz, 2365-2380 MHz and 2629-2669 Mhz. These frequencies were previously assigned to BellTel.