PLDT plans to delist Digitel

ABS-CBN News

Posted at Nov 03 2011 08:21 PM | Updated as of Nov 04 2011 04:21 AM

MANILA, Philippines - Philippine Long Distance Telephone Co. (PLDT) said Thursday it is considering delisting newly acquired Digital Telecommunications Philippines Inc. (Digitel).

PLDT Chairman Manuel Pangilinan said they plan to take the company private after they complete a tender offer to minority shareholders.

"From a total fully diluted perspective, the extent of minority holdings in Digitel is modest. It is likely that we would move towards privatization of Digitel," Pangilinan said.

"It is better that the main listed company will be PLDT," he added.

PLDT completed last week its P69-billion takeover of Digitel, acquiring 51.55% of the company from Gokongwei-led JG Summit Holdings Inc. The company is required to offer to buy out minority shareholders at the same price, potentially bringing the total value of the deal to P74 billion.

Minority shareholders of Digitel may swap their shares for PLDT shares or get paid P1.6033 per Digitel share they own.

PLDT, one of the country's most valuable listed firms, has reported a 10% decline in net profit during the third quarter of the year to P9.3 billion. - With a report from Lois Calderon, ANC