PLDT acquires Digitel in a 69.2 Billion Peso Deal

Philippine Long Distance Telephone Co. (PLDT), owner of telecom giant Smart Telecom, recently acquired Digital Telecommunications Philippines Inc. (Digitel) for 69.2 Billion Pesos and in the process, gained control of 70% of the cellular phone market in the Philippines.

Digitel is the owner of Sun Cellular, the third largest telecom company in the Philippines.  Sun Cellular is popular to subscribers because of its “unlimited” plans or promos and its very cheap rates. Digitel’s profits reportedly surged 65 percent last year, outpacing PLDT’s 1.1 percent increase and Globe Telecom’s 23 percent drop in net income.  With the acquisition, PLDT now cemented its dominance over rival Globe Telecom, which currently holds the second position in terms of subscriber base.

In the deal, PLDT bought JG Summit Holdings Inc.’s and other parties’ shares in Digitel, or a 51.55 percent stake.  The deal also covers PLDT’s assumption of Digitel’s liabilities and debt obligations.