PLDT-JG Summit extend Digitel deal closing for the second time

Telecommunications giant Philippine Long Distance Telephone Co. and conglomerate JG Summit Holdings Inc. extended the deadline anew for the closing date of the acquisition of Digital Telecommunications Philippines Inc. (Digitel). JG Summit and PLDT told the Philippine Stock Exchange that the new closing date of the transaction will be on August 26, 2011. The original closing date of the transaction was on June 30, 2011, which was later on moved to July 30, 2011. The companies said they are still "awaiting approvals of various regulatory bodies." "The regulatory process, which started in early April, has taken longer than we anticipated. Nonetheless, our commitment to this deal remains unchanged because we are firm in our belief that the transaction stands to bring substantial benefits not only to the shareholders but also to the consumers and the general public," said Manuel V. Pangilinan, PLDT chairman. James Go, JG Summit chairman, also reiterated that the transaction will "translate to the subscribers benefiting from a stronger and more robust telecommunications company resulting from the PLDT-Digitel deal." The P69.2-billion share-swap deal is currently under probe by the National Telecommunications Commission following opposition from various groups that claimed that the deal could pave the way for a new monopoly in the telecommunications sector. The deal will give PLDT 51.5-percent stake in Digitel in exchange for JG Summit holding about 12 percent of the whole PLDT Group. Combined, PLDT and Digitel will account for two thirds of the entire local market in terms of revenues. - CMA/OMG, GMA News