PLDT Acquires Sun Cellular

Philippine Long Distance Telephone Company (PLDT) acquired a majority 51.55 percent stake in Digitel, which owns the popular Sun Cellular brand, from Gokongwei-owned parent firm JG Summit Holdings Inc.

The acquisition which amounts to Php 69.2 billion, with the payment being made through an offering of PLDT shares at Php 2,500 a piece under the name of DTPI parent JG Summit Holdings Inc. In exchange, James L. Go, chairman and CEO of JG Summit Holdings, will occupy a board seat in PLDT.  The acquisition is expected to be completed by the end of the second quarter this year.

PLDT plans to keep Digitels Mobile operations intact, which gives the giant three mobile channels, Smart, red mobile and sun.

The acquisition now leaves two major players in the local mobile telecommunications market: PLDT and Globe Telecom.

Globe Telecom has also issued a press release on the matter;

“The Digitel and PLDT merger will not fundamentally change our strategy. We stand ready to compete, and to defend and grow our market share,” said Ernest L. Cu, Globe president and CEO in the statement.

“This industry has always been intensely competitive, and we have been a strong challenger to a dominant incumbent all this time. We will continue to focus on delivering relevant products to our retail and corporate customers, providing differentiated customer service, and enhancing our network to deliver the best experience possible to our subscribers,” Cu added.

 

 

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.