Digitel to buy shares of its mobile subsidiary

MANILA, Philippines - Digitel Telecommunications Philippines Inc. (DTPI), the Gokongwei group’s telecom arm, said it will acquire additional stock to be issued by Digitel Mobile Philippines Inc. (DMPI), its mobile subsidiary that runs Sun Cellular. DTPI, controlled by JG Summit Holdings Inc., will purchase three million shares that will be issued by its mobile subsidiary for P2,000 each, the company said in its disclosure to the Philippine Stock Exchange (PSE). “As full payment and complete satisfaction, DTPI shall assign, transfer, and convey unto DMPI the amount of P6 billion taken out from DTPI's deposits on future stock subscription of DMPI shares of stock," the company said, citing a deed of assignment executed on February 27, 2009. DTPI incurred P2.73 billion in losses for the first nine months last year owing to market valuation and foreign exchange losses. The company's consolidated service and nonservice revenues during the same nine-month period grew by 27.2 percent to P7.72 billion compared to last year. - GMANews.TV