PLDT completes due diligence on GMA

A wholly-owned unit of telecom giant Philippine Long Distance Telephone Co. said yesterday it has completed the due diligence on broadcast firm GMA Network Inc (GMA), which it plans to acquire.

ePLDT managing director Ray Espinosa told Reuters that while the deal has yet to be sealed, the planning on how to improve GMA’s television programming has begun. ePLDT is leading a group of financial investors for the acquisition of a majority stake in GMA.

PLDT, through another of its units, Mediaquest Holdings Inc, had earlier entered into a memorandum of understanding with GMA to buy a controlling 66.77 percent stake in the broadcasting firm for P8.5 billion.

"We are still summarizing the findings. What is clear when we finally acquire (a majority stake) in GMA is to allow it to market its shows in countries abroad. This is one of the aspects we want to focus on," Espinosa said.

The official said among the plans were to develop a channel that would market shows abroad and revive the UHF channel CityNet 27 into a channel devoted to news and public affairs.

"We had a long integration workshop and among the focus items were how to implement that strategy to develop a channel with shows marketed across the region. Another focus is to re-program CityNet 27 possibly into a news channel," he said.

Asked on whether Nippon Telegraph and Telephone Corp. <9432.T> was engaged in discussions with PLDT for possible investments in mobile phone unit Smart Communications Inc, Espinosa said talks were at a very preliminary level.

"There are ongoing discussions. They want to keep the relationship with PLDT warm. But there are no deadlines and no specifics on how NTT will do more business with PLDT," he said.

The NTT group, the largest telecommunications firm in Japan, has a 15 percent stake in PLDT.

Espinosa also denied media reports that PLDT was planning to raise between $500 million and $900 million from the capital market to refinance its debt and finance its expansion program.