Extelcom eyes debt, equity to build 5,000 mobile stations in 10 years

MANILA, Philippines - Express Telecommunications Co. Inc. (Extelcom), which is being eyed for acquisition by conglomerate San Miguel Corp., on Tuesday disclosed that it will be embarking on an aggressive expansion plan. The company will be spending $1.3 billion to build a network of 5,365 base stations over 10 years, a move that will support its ambition to become a market leader in the country, Extelcom said in a statement. The company said it is tapping a combination of debt and equity to fund its capital expenditures program. With its market re-entry, a move seen to challenge mobile players Smart Communications Inc., Globe Telecom Inc., and Sun Cellular, Extelcom said it believes that it can bring in significant benefits for consumers and industries and the general economy once it launches its mobile services. “The company’s re-entry will give the Filipino consumers more choices," said Luisito Sapiera officer-in-charge at Extelcom. Based on its application with the NTC, Extelcom’s roll-out will focus on both coverage and quality. It will establish a network with broad population and geographic coverage in the first five years. Earlier, San Miguel has confirmed negotiations to acquire debt-ridden Extelcom. Extelcom, which is currently under corporate rehabilitation, has an outstanding debt of P9 billion. The company is a joint venture between Lopez-led Bayan Telecommunications, Inc., Scott Sproule Cellular and Digital Excel Development, and Mayon Holdings Inc. Bayan is opposing a move by Trans Digital Excel Inc., the creditor-turned-shareholder, of Extelcom to sell its shares to San Miguel. The sale will pave the way for San Miguel to be the largest shareholder of Extelcom. - GMANews.TV