Globe secures CA approval to consolidate case with PLDT

Globe Telecom Inc. has secured the approval of the Court of Appeals (CA) to consolidate its petition regarding the co-acquisition of San Miguel Corp.'s (SMC) telecom assets with that of PLDT Inc.

“Throwing out the opposition of the Philippine Competition Commission (PCC), the Court of Appeals (CA) approved Globe Telecom’s urgent motion to consolidate its petition with PLDT,” the company said in a statement on Thursday.

In its motion, Globe noted the similarities "... of the issues and factual antecedents presented in the petitions filed separately by Globe and PLDT are immediately apparent.”

The CA 6th Division approved the consolidation of Globe's case with PLDT in an order on July 28.

"Consistent with Section 1, Rule 31 of the Rules of Court... the petitioner's 'urgent' motion to consolidate this petition with CA-GR SP No. 146528, entitled 'PLDT vs. Philippine Competition Commission' assigned to Justice Ramon Bato Jr., is hereby granted, subject to replacement with another case of similar nature and status as the one replaced," the decision read.

Globe General Counsel Froilan Castelo claimed that their petition will be consolidated with that of PLDT for the purpose of obligating the antitrust commission to declare the P69.1-billion transaction as deemed approved.

In July, PLDT filed for a petition for certiorari and prohibition with an application for a temporary restraining order (TRO). 

The TRO separately sought by Globe was junked by the CA on July 28.

But now, with the separate petitions consolidated in a single case, Castelo noted the Court of Appeals can proceed hearing the case.

“These are two different petitions joined as one. We don’t have the same arguments,” Castelo told reporters at the company’s headquarters in Taguig City.

“This is only but fitting as all Globe’s actions on this matter are well within the bounds of the rules,” he said.

The TRO would stop the quasi-judicial body PCC from reviewing the P69.1-billion co-acquisition deal.

The PCC earlier said it was “disappointed” that the telcos resorted to filing lawsuits against it to prevent a comprehensive review of the deal.

“We are confident that our courts will recognize the significance of protecting consumers and promoting competition in the market, and the authority of the PCC to independently exercise its mandate,” it said.

In a separate statement, Globe on Thursday announced a quarterly cash dividend of P22 per share payable on September 1, 2016.

This will be available to all shareholders on record as of August 16, 2016.

“The third quarter dividend payout, totaling P2.9 billion, represents 77 percent of the 2015 core net income on an annualized basis,” Globe acting CFO Rizza Maniego-Eala said.

The latest cash dividend will bring the total shareholder return to 25.4 percent in the year-to-date, with a dividend yield of 3.9 percent based on the closing price of P2,252 per share on August 1, 2016.

Earlier this week, Globe reported a net income of P9 billion in the first six months of the year, up 3 percent from the P8.7 billion a year earlier. — With Ted Cordero/VDS, GMA News