Digitel to increase capitalisation to PHP25bn

Digital Telecommunications Philippines Inc (Digitel), the telecoms group which was recently acquired by the country’s leading operator and rival Philippine Long Distance Telephone Company (PLDT) is raising its capital to PHP25 billion (USD583.2 million), the firm said in a filing with the Philippine Stock Exchange. Under the plan Digitel will increase its authorised stock capital by PHP16 billion, from PHP9 billion to PHP25 billion, through the issuance of 25 billion common shares worth PHP1 each. Former Gokongwei group-led Digitel was acquired by PLDT earlier year in a PHP74.1 billion cash and shares deal for a majority stake in the number three operator. However, Digitel president Orlando Vea says the capital increase will not be used to fund capital expenditure projects.