PLDT, Digitel enter share swap deal

Nine years after John Gokongwei Jr., the patriarch of the family that controlled Digital Telecommunications (Digitel), tried to acquire a stake in market leader Philippine Long Distance Telephone Co. (PLDT), the family has reportedly entered into a P69.2 billion share swap deal with PLDT, ANC’s Business Nightly reports.

PLDT chair Manuel Pangilinan said "each of the two groups saw the mutual benefit to each other” adding that they “have no problem working with the Gokongwei group."

Meanwhile, PLDT and Digitel’s competitor Globe Telecom through its president and chief executive officer Ernest Cu on March 29 said that the deal between their rival companies was “not totally unexpected.”

Citing as an example companies in the US, Cu said “players in a matured market usually needs to consolidate to remain competitive.”

He added that Globe will stick to their customer-centric strategies already in place.

*****

PLDT is the leading telecommunications provider in the Philippines which offers the largest and most diversified range of telecommunications services across the Philippines’ most extensive fiber optic backbone and fixed line, cellular and satellite networks such as PLDT, Smart, Talk 'N Text, Red Mobile and PhilCom.

Digitel is the second-largest fixed-line and the third-largest mobile telecommunications company in the Philippines, which owns Sun Cellular.

Business Nightly airs weeknights at 9PM on ANC. Click here to watch video.