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PHILIPPINE Long Distance Telephone Co. (PLDT) said
its acquisition of Pilipino Telephone Corp. (Piltel) requires no
Congressional approval.
In a filing with the
National Telecommunications Commission (NTC), Fernando Sobierra 3rd,
PLDT legal counsel said the transaction only requires the approval
of the regulator.
Sobierra said PLDT has a valid
and existing legislative franchise for telecommunications, adding
that under the law, a company with such a permit no longer requires
prior Congressional approval for the acquisition of another
franchise held by a separate company.
PLDT is seeking regulatory
approval of its purchase of Piltel’s local exchange carrier (LEC)
assets amounting to P802.3 million, exclusive of value-added tax.
Under Section 20 (g) of the
Public Service Act, the NTC should approve any sale of assets, lease
of the same, certificates, franchises, among others.
“The consummation of the
transaction will result to a more efficient delivery of LEC services
to customers/subscribers, and will redound to the best interest and
benefit of the general public,” PLDT said.
Piltel had about 40,415 fixed
line subscribers at end-September last year.
On December 4, Napoleon L.
Nazareno, PLDT president and chief executive, and Ramoncito S.
Fernandez, Piltel director, executed an asset sale and purchase
agreement.
The closing date of the
transaction will be on March 31, 2008, or later date to be mutually
agreed by the parties in writing.
PLDT bought the LEC business of
Piltel involving the operation of local exchanges, wire line
telecommunications service to residential customers, and wire line
telecommunications service to residential and institutional
subscribers/customers in the LEC service areas.
--Darwin G. Amojelar
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