Wednesday, April 6, 2011

PSE puts PLDT on trading halt on Digitel deal

The Philippine Stock Exchange on Wednesday imposed a trading halt on shares of Philippine Long Distance Telephone Co. (PLDT) until 10 a.m. after the telecom firm disclosed more details about a major acquisition deal.

The exchange said PLDT had submitted a comprehensive disclosure in connection with the possible additional listing of PLDT shares to be issued as payment for its acquisition of a controlling stake in Digital Telecommunications Philippines Inc. (Digitel).

Top telco PLDT announced last week it would acquire a 51.55% stake in No. 3 player Digitel from the latter's parent, JG Summit Holdings Inc., and certain other Digitel shareholders.

PLDT would also make a mandatory tender offer to other shareholders, which would increase the value of the deal to $1.7 billion assuming a full acceptance.

On Wednesday the telecom firm said PLDT shares would be issued to Digitel shareholders JG Summit, Express Holdings Inc., Solid Finance (Holdings) Ltd., and Elizabeth Yu Gokongwei, as well as to other shareholders who will participate in the mandatory tender offer.

Shares of PLDT closed 2% lower at P2,352 on Tuesday.

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