SMC Sells Telco Assets To PLDT, Globe
After showing interest of entering the telecommunication industry, San Miguel Corporation (SMC) on Monday (May 30) said that the company is now selling their assets to rivals Philippine Long Distance Company (PLDT) and Globe Telecom.
In a statement, PLDT said that its Board of Directors has approved the acquisition of the 50% equity interest of SMC’s telecommunication business.
“The consideration for the acquisition of the SMC telecommunications business is PHP69.1 billion which includes PHP52.08 billion for 100% equity interest in Vega Telecom, Inc ("Vega Telecom") and the assumption of around PHP17.02 billion of liabilities,” the company said.
The said deal will pave the way for both PLDT and Globe access to SMC's 700MHz, but also involves “a return of certain radio frequencies to the Government” via the National Telecommunications Commission.
“We are returning certain frequencies to gov't to ensure possible entry of a 3rd telco player. Competition good for our industry. No problem,” said PLDT Chairman Manuel V Pangilinan.
They added that the said acquisition “will provide significant benefits to PLDT, Smart, TNT and Sun Cellular customers, further improve Internet and data services for the public, and speed up the country's overall development efforts.”
Last year, SMC and Australia’s telco company, Telstra Corp. have terminated negotiations of planning a joint venture in the Philippines after announcing that the latter was planning to invest $ 1 billion.