Now Corp., a company owned by businessman Mel Velarde, raised its stake in a telecom affiliate as the latter plans to list at the local bourse by way of introduction.
The publicly-listed telecommunications, media and technology firm increased its stake in Now Telecom Company Inc. from 19 percent to 24.23 percent. NTCI’s franchise was extended for another 25 years beginning 2018 while its mobile cellular licenses were renewed.
Recently-elected Now Corp. chairman Mel Velarde said the company was moving forward with the corporate restructuring of NTCI to take it to the next level.
“Think of Now Corp. as the licensed value-added service provider of TMT [telecommunications, media, and technology] products, but think of Now Telecom when it comes to CMTS [cellular mobile telephone system]. We speak for Now Corp. owners that we must play a bigger part of the game plan,” he said.
Velarde said Now was the first to introduce pre-5G broadband speed of up to 2 gigabits per second to enterprise clients. He said the next move is to extend the service to the residential and consumer markets through fixed wireless access and mobile cellular devices.
“Now Telecom’s licenses and its evolving business plan, which is a work in progress with Nokia, would allow us to offer gigabit speed to both fixed and mobile cellular broadband subscribers,” Velarde said.
The shareholders ratified Now Corp.’s subscription to 1 million primary common shares of NTCI to be issued out of the proposed increase in the latter’s authorized capital stock at a price of P600 per share, using the parent’s existing advances amounting to P130.5 million plus deposits of P469.5 million for a total consideration of P600 million.
NTCI appointed Unicapital Inc. as financial advisor to undertake its corporate restructuring and exclusive issue manager and financial advisor for a planned listing by way of introduction in the stock exchange.
“The telecom firm is currently setting the stage for its own public listing as well as its 5G or fifth generation network rollout, bolstered by the extension of its provisional authority to operate a cellular mobile telecommunications system,” Now said.