PLDT completes Digitel acquisition

Philippine Long Distance Telephone Company (PLDT) has announced that it has completed the acquisition of a 51.55% stake in rival telco Digitel after receiving regulatory approval for the deal valued at PHP69.2 billion (USD1.6 billion). In exchange, Digitel parent JG Summit Holdings will obtain a 12.9% stake in PLDT. The companies had originally hoped to complete the transactions by 30 June, but ran into dealys caused by the wait for regulatory approval coupled with objections raised by Globe Telecom. Under the terms of the deal, PLDT has been ordered to sell its holding in 3G operator Cure (Red Mobile), while Digitel must continue offering its unlimited call and text offers. PLDT has indicated that it plans to launch a tender offer for the remaining 48.45% stake in Digitel currently held by the public.