PLDT - DGTL deal finally approved

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source: http://teknisyan.net

Got this news today from Businessworld @ www.bworldonline.com

This deal has been hanging since June and PLDT has to sacrifice some in order for this to culminate. The main sacrifice made was a divestment of one of PLDT's frequencies which would as they say make the playing field level with Globe Telecom.

Below is an excerpt of the news:

source: http://www.bworldonline.com

PLDT-Digitel deal approved

PHILIPPINE Long Distance Telephone Co. (PLDT) completed on Wednesday its delayed takeover of rival Digital Telecommunications Philippines, Inc. (Digitel), saying regulators had approved the transaction. The National Telecommunications Commission (NTC) confirmed that it had greenlighted the P69.2-billion deal -- announced early this year and originally scheduled for completion in June -- but also put in place several conditions that included the dominant telco’s divestment of some of its frequencies.

PLDT said it had accepted the NTC’s requirements, while second-ranked Globe Telecom, Inc. -- which had questioned the purchase and claimed that it would lead to a return to a monopoly -- said it was satisfied that regulators had moved to protect consumers and promote fair competition.

source: http://www.philippinenewsdaily.com

PLDT’s acquisition of JG Summit Holdings, Inc.’s 51.55% stake in Digitel will give the dominant telco some 70% of the domestic mobile market, leaving Globe about 30%. PLDT said it would soon announce a tender offer for the rest of Digitel.

Shortly after PLDT’s announcement, 3.277 billion shares of Digitel changed hands via a cross sale in the stock market at P1.6033 per share.

In exchange for the Digitel stake, JG Summit will get 12.9% of PLDT, comprising 27.7 million common shares at P2,500 apiece.

PLDT also acquired the zero-coupon convertible bonds issued by Digitel to its parent and assumed P34.1 billion in advances made by JG Summit to Digitel.

“After due evaluation of the various factors and issues involved, it has granted the application for approval of the sale and transfer to the PLDT of initially approximately 51.55% equity in Digitel,” NTC commissioner Gamaliel A. Cordoba said in a press conference.

The NTC decision came a day before a 90-day review period was to expire. The protracted regulatory approval period had prompted PLDT and JG Summit to thrice suspend the deal’s planned completion.

The regulator said PLDT would have to continue Digitel’s unlimited text and call services. “Regarding the unlimited services, we want it to be permanent, continuous and we want a nationwide-reach [for these services],” Mr. Cordoba said, adding that Digitel’s mobile service should be kept separate.

PLDT was also required to divest 10 megahertz of 3G frequencies held by Connectivity Unlimited Resource Enterprises, Inc. (CURE), a unit of subsidiary Smart Communications, Inc. CURE’s frequencies will be auctioned off and PLDT will not be allowed to bid, Mr. Cordoba said.

“Another condition requires PLDT and Digitel to continue providing high quality service to their respective subscribers,” he said. 

(Click here to read more of this news)

This news suddenly made the price of TEL surge 

source: http://www.pse.com.ph

Coupled with the recent news in the Eurozone that the Greek bailout has finally been made we are hoping that today's positive news will continually drive the PSEi to rise to its previous high and hopefully bring back the bullish air in the Philippine Stock Market.

Who are the Ayala brothers

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source: http://www.millionaireacts.com

While yesterday's massive downtrend in the Philippine Stock Market was rumored to be 50% caused by the erroneous placement of trade of ALI(Ayala Land Inc.) of the Ayala group(AC), these two brothers are seen as one of the country's top businessmen. Please meet Jaime Augusto Zobel de Ayala and Fernando Zobel de Ayala.

 Source: http://peace-foundation.net

Jaime Augusto Zobel de Ayala

He currently serves as chairman and chief executive officer of the Ayala Corporation. 

In addition to his position in the Ayala Corporation, Jaime is chairman of the Board of Directors of Globe Telecom, Bank of the Philippine Islands, and Integrated Microelectronics Inc. (IMI); vice chairman of the Board of Directors and member of the Executive Committee of Ayala Land, Inc. (ALI); vice chairman of Manila Water Co.; and co-vice chairman and trustee of Ayala Foundation, Inc.

He is also a member of various international and local business and socio-civic organizations including the J.P. Morgan International Council, Mitsubishi Corporation International Advisory Committee, Toshiba International Advisory Group, Harvard University Asia Center Advisory Committee, Board of Trustees of the Asian Institute of Management, National Council member of the World Wildlife Fund (US), and Chairman of World Wildlife Fund (Philippines). 

Honors include World Economic Forum Global Leader for Tomorrow in 1995; Emerging Markets CEO of the year in 1998 (sponsored by ING); Philippine TOYM (Ten Outstanding Young Men) Award in 1999 and Management Association of the Philippines Management Man of the Year Award in 2006. Most recently, Mr. Zobel was awarded the Presidential Medal of Merit on March 11, 2009 by Philippine President Gloria Macapagal Arroyo for "enhancing the prestige and honor of the Republic of the Philippines both at home and abroad."

On September 27, 2007, Ayala Corp. chair Jaime Augusto Zobel de Ayala was conferred the Harvard Business School’s highest honor, the Alumni Achievement Award, by Dean Jay O. Light. The award was also given to: Donna Dubinsky, A. Malachi Mixon of Invacare, Sir Martin Sorrell of WPP Group and Hansjorg Wyss of Synthes. Jaime Augusto received his MBA from HBS in 1987. He was cited for “his innovative, entrepreneurial style of management (that) has benefited both Ayala and an island nation that faces significant social and economic challenges.” He is the first Filipino to receive this prestigious award.

The Philippine Legion of Honor with rank of Grand Commander was awarded to Jaime Augusto on June 29, 2010. This is awarded by the President of the Republic of the Philippines to recognize outstanding public service that has benefitted the republic, particularly in the preservation of the honor of the country and in nation building.
 

Jaime Augusto holds a B.A. degree in economics (cum laude) from Harvard College (1981), and an MBA from the Harvard Graduate School of Business Administration (1987). 

source: http://www.flickr.com/photos/joseworks/

Fernando Zobel de Ayala

He  graduated from Harvard College with a Bachelor of Arts degree in 1982. He also completed a program in International Management at INSEAD in France.

Fernando is the President and Chief Operating Officer of Ayala Corporation, the holding company of the Ayala group. He is also the Chairman of Ayala Land. The Ayala Land is the Philippines’ largest real estate firm and its only complete line property developer. In addition, he is one of the leader of the boards of the other Ayala Group companies. 

Aside from serving on these various boards of the Ayala group, Fernando is an active member of business clubs and professional organizations namely the Young Presidents’ Organization in the Philippines, the Management Association of the Philippines, the Makati Business Club and the Harvard Club. He is also a member of the World Economic Forum, the Habitat for Humanity International Advisory Group for Asia Pacific, the INSEAD East Asia Council and the International Council of Shopping Centers Board of Trustees.

The Philippine Legion of Honor with rank of Grand Commander was awarded to Mr. Zobel on June 29, 2010. This is awarded by the President of the Republic of the Philippines to recognize outstanding public service that has benefitted the republic, particularly in the preservation of the honor of the country and in nation building.