Digitel okays issuance of shares, bonds

The board of directors of Digital Telecommunications Philippines Inc. (Digitel) has approved the issuance and registration of non-convertible preferred shares.

Digitel did not divulge other details of its proposed issuance of non-convertible shares, saying these were still under deliberation.

The board also approved the issuance of $31.12—million zero coupon convertible bonds.

The bonds will have a 12-percent interest and convertible into common shares in 2012 at P1 per share.

The eligible subscribers to the bonds shall be limited to Digitel shareholders as of Sept. 30, 2002. Each shareholder shall be entitled to subscribe to $1 face value of bonds for every 217 shares of Digitel. ATR-Kim Eng Capital is the lead underwriter for the issue.

The company will use proceeds from the offering to partially pay advances extended by parent firm JG Summit Holdings Inc.

Digitel plans to invest P6 billion next year for its nationwide wireless telephone network in a bid to become the preferred full service telecommunications provider in the country.

The amount is in addition to the P11 billion earmarked by Digitel for the setting up of its wireless infrastructure this year.

Digitel began development for its nationwide wireless telephone network in 2001.