Pangilinan: As PLDT's wholly-owned subsidiary, Smart need not list on the PSE

Smart Communications Inc., a wholly-owned subsidiary of PLDT Inc., does not have to go public as demanded by lawmakers for the mobile service provider to get a franchise extension from Congress.
 
“I think Attorney Espinosa has answered that already ... to the extent that PLDT is very much a public company with listings here and in New York. That it’s sufficient to accommodate, at least to my recollection, under the relevant regulation to satisfy the public listing requirement of Smart, because Smart is a 100-percent owned subsidiary of PLDT,” PLDT Chairman Manuel V. Pangilinan said on Tuesday.

During Monday's congressional hearing on Smart's franchise, lawmakers noted there may be a need for the company to list its shares on the Philippine Stock Exchange prior to getting its operating franchise extended before the March 17, 2017 deadline. PLDT Chief Corporate Services Officer Ray Espinosa represented the companies during the hearing.

“From a commercial standpoint, within a group, it’s best that there’s only one listed company – the parent usually,” Pangilinan said.

“Otherwise, if you open too many doors... Number one, it’s very confusing. Number two, it provides entry points for investors to invest in Smart, PLDT or any other entity. So, commercially, it doesn’t make sense to have so many listings within a particular business,” he added. — VDS, GMA News