The new investors of Philippine Telegraph & Telephone Corp. led by businessmen Benjamin Bitanga and Salvador Zamora plan to seek the Philippine Stock Exchange’s approval for the lifting of the company’ trading suspension after nearly 13 years.
PT&T chief operating officer Miguel Bitanga said in an interview the resumption of trading of the company’s shares in PSE would be a key component to its growth strategy to expand its fixed broadband business in Metro Manila.
“That is a key component because that is how we would be able to get a new investor,” Bitanga said.
Bitanga said PT&T was expecting to get PSE’s approval to lift the trading suspension because it was the company itself that sought voluntary trading suspension in December 2004.
Shares of PT&T were last traded on Dec. 9, 2004 when it closed at P0.33 per share. It had a public float of 29.95 percent.
Bitanga said while the company was in trading suspension, it managed to submit the minimum requirements for compliance with PSE.
Bitanga said on the company’s corporate rehabilitation, PT&T would allow the process to proceed. “Being under receivership does not prevent us to go forward. We are still allowed to operate our normal business,” Bitanga said.
PT&T secured court approval in 2011 to implement a 15-year rehabilitation plan.
PT&T said Friday it sold a 70-percent stake to Menlo Capital Corp., a 50:50 joint venture between Bitanga and Zamora.
The company did not disclose the acquisition price. Bitanga said the deal was worth less than P1 billion.
PTT, which secured a franchise extension last year for another 25 years, offers fixed broadband to residential and business establishments in Metro Manila. It aims to become a significant player in the broadband industry which is currently being dominated by Globe Telecom, PLDT Inc. and Sky Broadband.
Bitanga said PT&T still has room to expand its business in Metro Manila. “The current infrastructure in Metro Manila is not yet saturated. There is still so much opportunity for us to penetrate the fixed broadband business,” Bitanga said.