PT&T hopes to resume trading on PSE this year

Philippine Telegraph and Telephone Corp. (PT&T) said Thursday it is optimistic about resuming trading on the Philippine Stock Exchange (PSE) to help its bid for the third telco slot.

It has completed all the requirements set by the PSE on lifting the voluntary trading suspension covering 800 million common shares, the company said in a statement.
 
“Having fulfilled the requirements set by the PSE, PT&T should be allowed to resume trading and enact future plans of the new shareholders and management team,” PT&T chief operating officer Miguel Bitanga said.

Bitanga told GMA News Online the requirements included the company’s audited financial statements, which showed PT&T is in good financial health allowing the auditor to a clean bill of health, and the settlement of arrears or penalties under the previous management team during the rehabilitation years.

“We have complied with both,” Bitanga said.

In August 2017, Menlo Capital Corp., jointly owned by Nickel Asia Corp. founder Salvador Zamora II and businessman Benjamin Bitanga acquired substantial interests in PT&T from Republic Telecommunications Holdings Inc.

Market driven benefits

The new investors conveyed their desire for PT&T shares to be traded again on the PSE and strengthen the telco’s ability to raise fresh capital and expand its broadband and data business and possibly help its bid for the third major telco player.

“Whether from a perspective of compliance to the PSE or based on purely economic/market driven benefits, there should be no reason why the company should be prevented from bringing the publicly traded shares into play again, and eventually raising capital to fund future plans, both within and outside of the fixed broadband space,” Bitanga said.

PT&T shares have been on voluntarily suspension since Dec. 13, 2004, following their last trading day on December 9 that same year when the shares closed at P0.33 per piece.

Bringing PT&T shares back on the PSE could boost the exchange’s market capitalization by several billion pesos, which would benefit both the exchange and the and the investing public, PT&T president and chief executive officer James Velasquez said.

“The lifting of suspension also allows the entry of new investors into PT&T in its bid to become the third telco player in the Philippines telecommunication industry,” Velasquez said.

The company has the underlying assets and existing business to support its shares as well as a competent management team and a positive growth outlook, he said.

Court approval

Denying the request would be detrimental to all creditors of PT&T, Villanueva noted, saying the company has secured a court approval to exit corporate rehabilitation.

On August 6, 2018, the  Regional Trial Court of Makati City, Branch 66, approved the request of PT&T to leave its rehabilitation phase as long as it has complied with certain requirements in line with the rehabilitation plan.

Under a court-approved 14-year rehabilitation plan, P8.8 billion in corporate debts would be paid in redeemable serial preferred shares of PT&T. The company’s rehabilitation plan was approved in 2011.

PT&T reported a net income of P37 million in fiscal year ending June 2018, from a net loss of P27 million in the same period last year.
 
Net operating revenue amounted to P211 million, up 55 percent from P136 million—a result of new clients.
 
PT&T holds a 25-year franchise to establish, maintain, and operate both wired and wireless telecommunications systems for domestic and international communications in the Philippines. —VDS, GMA News