Diversifying conglomerate San Miguel Corp. (SMC) is beefing up its telecommunications business with an increase in its stake in Eastern Telecommunications Philippines Inc. (ETPI), acquiring 37.7 percent share in the company from ISM Communications Corp. for P1.5 billion.
It reported to the bourse that the shares purchase was coursed through its wholly-owned subsidiary San Miguel Equity Securities, Inc., executed a Share Purchase Agreement with ISM Communications Corp. for the approximately 37.7 percent.
ISM said the total consideration for the SPA is P1,507,777,692.00. The acquisition will increase SMC’s stake in Eastern Telecoms to more than 75 percent.
SMC said the purchase was authorized by its Board of Directors during its meetings held on Dec. 16, 2010 and September 22, 2011, respectively.
SMC, through its unit Vega Telecom Inc., acquired a 40 percent stake in Eastern Telecom of the Ongpin group. Vega Telecom acquired 100 percent of A.G.N. Philippines Inc. through a share purchase agreement with ISM Communications last Dec. 30, 2010. AGN owns 40 percent of Eastern Telecom.
ISM Communications is owned by Roberto Ongpin, who is also a director of SMC. Ongpin’s Top Frontier Investments Holdings Inc. completed its acquisition of Q-Tech Alliance Holding’s 20 percent stake in SMC) last March through a cross-sale at the Philippine Stock Exchange.
ETPI offers data and Internet services to more than 5,000 corporate subscribers and small and medium enterprises (SMEs). Besides traditional bandwidth and connectivity solutions, the telco also offers wireless access, services for high-end Internet cafés, business applications and special packages for SMEs and corporations.
SMC also owns 100 percent of Bell Telecommunications Philippines Inc. and 41.5 percent of Liberty Telecoms Holdings Inc.
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