First Pacific expected to increase PLDT stake

13 Dec 2006

Hong Kong-based investment and management company First Pacific Holdings, which has interests in telecoms and consumer food products in Southeast Asia, is expected to exercise its right to up its stake in Filipino fixed line operator Philippine Long Distance Telephone Co (PLDT) by 6.6%. According to Citigroup, First Pacific has a ‘right of first refusal’ on owning shares in Philippine Telecommunication Investment Corp (PTIC), holder of a 14.4% equity interest in PLDT. The Hong Kong group currently owns a 54% stake in PTIC.

Earlier this month Singapore-based Parallax Capital Management offered PHP25.2 billion (USD509.3 million) for the government’s 46% stake in PTIC, topping a rival bid of PHP24.9 billion put forward by Pan Asia Presidio Capital. Parallax Capital is part of Parallax Venture Fund which was founded in 1999 to take advantage of investment opportunities in Asia in the wake of the economic crisis of 1997. It focuses on private equity, overlay management, and venture capital.