Solid Group taps Destiny infra for broadband telecoms

Solid Group Inc., the publicly-listed holding firm of businesswoman Elena Lim, plans to take over the operations of its sister firm Destiny Cable Inc. to consolidate its growing multimedia businesses anchored on broadband telecommunications.

In a disclosure to the Philippine Stock Exchange, SGI said it is "still pursuing the acquisition of DCI as approved by shareholders."

SGI said it was in fact in consultation with its lawyers as to how to structure the acquisition in consideration of the foreign ownership restriction on companies engaged in the mass media business.

In its bid to become the largest provider of multimedia services in the country, SGI will acquire DCI and its subsidiaries Destiny Inc. and Destiny Satellite Corp. by issuing a specified number of its common shares to DCI to become the beneficial owner of 100 percent of the outstanding capital of these companies.

The integrated multimedia businesses of the Destiny Group are cable TV, high-speed Internet and leased line services, cable telephony, VSAT services, broadcast uplink and programming services.

The acquisition of the Destiny Group will also allow SGI to maximize opportunities from the congressional franchise of wholly-owned subsidiary, Solid Broadband Corp. (SBC).

Last year, SBC obtained a congressional franchise to construct, install, and operate telecommunications systems throughout the Philippines under RA 9116.

SGI intends to utilize the Destiny broadband infrastructure in operating the SBC franchise.

SGI is seeking opportunities in broadband and multimedia businesses and other areas as part of its investment portfolio diversification strategy given the sluggish growth in the consumer electronics sector and the increasing volume of importation of CBU (completely built-up units) due to lowering of tariffs.

In documents earlier filed with the Securities and Exchange Commission, SGI said it will pursue new network-oriented businesses such as voice-over-Internet-protocol services or VoIP, open access to other Internet and applications services providers, virtual private networks and online multiplayer network gaming.

SGI manufactures consumer electronic products in the Philippines carrying mainly the "Sony" brand.

The company’s electronic export business which was undertaken by Kita Corp., a wholly-owned subsidiary, was discontinued in 2001 due to the absence of orders from its sole principal, Aiwa Co. Ltd. of Japan in the face of a global economic slowdown.