San Miguel unit gets controlling stake in Bell Telecom

ABS-CBN News

Posted at Aug 16 2010 10:50 AM | Updated as of Aug 17 2010 08:55 AM

MANILA, Philippines - Conglomerate San Miguel Corp. said on Monday its wholly-owned subsidiary, Vega Telecom Inc., now controls Bell Telecommunication Philippines Inc. (Bell Telecom) through its purchase of new shares in 3 three local firms that  own Bell Telecom.

In a filing with the Philippine Stock Exchange, San Miguel Chief Finance Officer Ferdinand Constantino said San Miguel cquired new shares in Two Cassandra-CCI Conglomerates Inc., Perchpoint Holdings Corp. and Power Smart Capital Ltd., which together own 100% of Bell Telecom.

"Through such subscriptions, Vega shall own up to 75% of the outstanding capital stock of the said corporations," said Constantino.

The company did not disclose how much it spent for acquiring the new shares.

San Miguel, the country's biggest food and beverage company, has been diversifying and is positioning to become a major player in power distribution and generation, oil refining, infrastructure development and telecommunications.

San Miguel "A" shares which are restricted to local investors were steady at P67.50, while its "B" shares, open to both domestic and foreign investors, edged down by 2.7% to P68 in mid-trading on Monday.