PLDT expands in Mindanao with Philcom acquisition

MANILA, Philippines - Phone giant Philippine Long Distance Telephone Co. (PLDT) just got bigger with the acquisition of Philcom Corp., a local telephone firm serving southern Philippines. PLDT shelled out P340 million to cover Philcom's liabilities held by PremierGlobal Resources Corp. The debt agreement was inked on January 2. PLDT is likewise spending P75 million for the rights, title and interest in and to all of the shares and common stock of Philcom's parent, Philippine Globel Communications, Inc. “The result of the two transactions ends up PLDT owning 100 percent of Philcom Corp.," PLDT spokesperson Ramon Isberto said. The purchase of Philcom allows PLDT to reach a wider market in Mindanao, where it already operates PLDT-Maratel, Inc. and Smart Broadband, Inc. “This expanded presence is expected to benefit not only the existing subscribers in the area, but provides the communities in the area an opportunity to access improved telecommunications facilities," PLDT said. Parties involved in PLDT's Philcom acquisition still needs a transaction approval from the National Telecommunications Commission. PLDT has been managing the fixed line operations of Philcom since 2004 under an advisory and management agreement with Philippine Global. Philcom has been indebted to PLDT since 2001 for roughly P2.2 billion. PLDT has been in talks with Philcom creditors and shareholders for the restructuring of the Mindanao-based telco's debts. Philcom serves Daval Oriental, Davao del Norte, Misamis Oriental, Surigao del Norte, Surigao del Sur, Agusan del Norte, Agusan del Sur, Bukidnon, Basilan and Camiguin. The company has 16 interconnection agreements and more than 16 overseas correspondent partnerships in countries like Saudi Arabia, Hong Kong, the United States, Japan, Taiwan, Singapore and Canada. - GMANews.TV