Next Mobile sets ‘back-door’ listing through PEP

Shareholders of leading digital trunk radio operator Next Mobile Inc. (NMI) have signed an agreement with publicly listed Premiere Entertainment Productions Inc. (PEP) for the "back-door" listing of NMI in the Philippine Stock Exchange in connection with the plan to raise additional funds through equity.

This will be done via the swap of NMI shares held by NMI shareholders (constituting a 97-percent ownership in NMI) with primary shares to be issued by PEP (constituting 96.2 percent of PEP), NMI president and CEO Mel Velarde said.

NMI also revealed that the final step in its capital restructuring to be accomplished within the third quarter of 2004 is the wipeout of its accumulated deficit. With a cleaned up and fortified balance sheet, a restructured and enhanced equity base, and a positive income for 2003, the company is now better geared up for expansion and growth, he stressed.

Also yesterday, Velarde announced the appointment of Eduardo David, president of H&Q Philippines Inc., as NMI’s new chairman of the board during its recent annual stockholders’ meeting.

David succeeds Joe Alejandro who will continue to sit as NMI vice chairman and shall oversee the nationwide expansion of the phone company aside from continuing to serve the organization in various capacities.

"This election of a most distinguished Asian business leader in the person of Ed David as chair of Next Mobile provides the company with an enormous wealth of experience and proven track record in global financial and business undertakings primarily on high growth, high value technology-based investments," said Velarde, chairman of the Velarde Group, Inc., which acquired ownership of NMI, formerly Nextel Communications Philippines Inc.

Velarde said the vast experience and expertise of David will help pave the way for NMI’s continuous realization of its main thrust of becoming a viable mobile player in the Philippines by providing the country a four-way communication tool encompassing the functionalities of a digital multi-way radio, a mobile phone, a computer, and an intelligent information appliance.

"H&Q funded a business plan I helped develop in 1990 when it was a mere piece of paper which later grew into a company that dominated the multi-channel television market in the Philippines. With him in NMI today, I wish to replicate that success. He will help us create a truly profitable business focused on a valuable market niche in the mobile wireless industry, not just here but also abroad," Velarde pointed out.

He added: "He is a most positive asset to a company that has gone 180 degrees in its transformation in the last 18 months. NMI’s splendid turnaround with its financial restructuring and positive indicators of performance in areas of subscriber profitability, equity growing from negative P13 billion to positive P2.9 billion, a net income realized for the first time in end 2003, can be sustained with the entry of Mr. David’s senior-level leadership, that has a global reputation and credibility, especially now that the company is about to get listed in the PSE."