PLDT Now Owns 51 Percent of ‘Philippine Star’ Company

The Philippine Long Distance Telephone Co.’s (PLDT) media businesses will have a 51-percent controlling stake in newspaper operator PhilSTAR Daily Inc. after the transaction closes by the end of April, clarifying an earlier announcement made by the telco’s chairman.

Reports said that in a regulatory filing to the stock exchange, the telecommunications giant said Hastings Holdings Inc., a wholly owned subsidiary of MediaQuest Holdings Inc., has signed an agreement to acquire an additional equity interest in The Philippine Star owner.

The disclosure said “When the purchase transaction closes, Hastings’s total holding in The Philippine Star increases to 51 percent.”

MVP

Earlier, PLDT Chairman Manuel V. Pangilinan (MVP) said his firm has signed an agreement for an additional 40-percent stake in the newspaper operator, bringing the telco’s shareholding to 60 percent.

This was confirmed by PhilSTAR Daily President and Chief Executive Officer Miguel G. Belmonte, saying that the Hastings made a partial payment late Monday last week.

The share purchase transaction will be finalized on April 30.

Belmonte reportedly said, over a phone interview by business mirror, that “Hastings Holdings is acquiring an additional 30-percent share held by our family. We will not be selling additional shares as we intend to maintain a 20-percent stake [in the newspaper]. The remaining 29 percent is held by various shareholders.”

The official noted that the value of the transaction “was just below P5 billion.” Belmonte added: “I’m just speculating, but I believe the MVP Group will be offering to buy additional shares from other shareholders.”

He stressed that “Management control remains with our family. “I’ll still be the president of our group of companies. They even gave us complete editorial independence,” he said.

Negotiations between MediaQuest and the Philippine Star started in 2009. The group of Pangilinan had been in talks to acquire a controlling stake up to 87.5 percent, but pricing issues got in the way, report said.

MediaQuest

MediaQuest is owned and controlled by the PLDT Beneficial Trust Fund. It holds a 70-percent stake in BusinessWorld and a 10-percent stake in the Philippine Daily Inquirer. It also owns a direct-to-home satellite television Cignal TV and broadcast firm TV5.

Moody’s Investors Service has said the dominant telecommunications network will likely continue seeking investment opportunities in the multimedia sector to strengthen its ability to deliver content through its broadband and mobile networks.

More Opportunities

In spite of these acquisitions, the telco giant is still looking at more opportunities to expand its presence in the industry. Negotiations for the acquisition of a minority stake in GMA Network Inc. have collapsed anew.

PLDT’s net income slid by 2 percent to P35.4 billion in 2013 from P36.1 billion as a result of higher foreign-exchange and derivative losses, coupled by the damage brought about by Supertyphoon Yolanda in the fourth quarter.

Consolidated service revenues for 2013 grew 3 percent to P164.1 billion, as revenues from the data and Internet business more than offset the declines from international and national long distance streams.

Expenses grew by a slower 2.4 percent to P125.52 billion from P122.53 billion in 2012. (BusinessMirror)