5 Apr 2013
Filipino telecoms giant Philippine Long Distance Telephone Company (PLDT) has given its backing to new rules on foreign ownership of domestic companies, GMA News reports. Currently, at least 60% of the telco’s voting shares are owned by Philippine nationals, partly the result of a recent Supreme Court decision that defines ‘capital’ as meaning voting shares only. PLDT took steps to issue 150 million new preferred voting shares to a subsidiary of PLDT Beneficial Trust Fund – BTF Holdings – in an effort to dilute/reduce the percentage of the company in foreign hands to 34.5% from 58.4%. The operator also reports that it considers new draft rules issued by the Securities and Exchange Commission (SEC), that would set up a two-tier system of ownership, to be ‘consistent with the constitution and other laws’. PLDT also expressed its desire that the revised rules on foreign ownership will result in ‘a more conducive and enduring atmosphere for foreign investments in the Philippines’.