PLDT completes majority ownership of Digitel
26 October 2011 |
The Philippines telco PLDT has completed a $1.6 billion share swap with Digital Telecommunications Philippines (Digitel), giving it majority ownership of its domestic rival.
The move was completed following regulatory approval from the National Telecommunications Commission (NTC) but was granted on two conditions; firstly that PLDT divests itself from its unit CURE which owns 10MHz of 3G frequency, and secondly that it continues to offer Digitel’s popular unlimited call and text service.
The deal had been delayed by regulatory approval for some seven months, with rival Globe Telecom seeking an intervention by the government on the grounds that the takeover would give PLDT a two thirds share of the domestic market.
According to reports, Globe Telecom has welcomed the conditions set by the NTC.