25 Apr 2012
The Philippines’ Securities and Exchange Commission (SEC) has filed documents approving Philippine Long Distance Telephone Company (PLDT’s) valuation of PHP14.64 billion (USD343.49 million) worth of Digital Telecommunications (Digitel) bonds, paving the way for it to secure a near 100% ownership of the firm it took control of in October last year. The SEC’s rubber stamping of the deal will allow for the bonds’ conversion into equity, the filing said. The zero-rated bonds are 2013 and 2014 convertible bonds issued by Digitel to its parent, JG Summit Holdings, and purchased by PLDT in 2011. Upon completion of the transaction PLDT’s equity stake in Digitel will increase from 51.55% to 99.50%, said a spokesman for PLDT, Ramon R Isberto. The SEC filing also confirmed that Digitel has secured approval for an authorised increase of its capital stock from PHP9 billion to PHP25 billion to facilitate the full conversion of the bonds.