MANILA, Philippines – Accelerating its diversification into other high-growth industries, food and beverage conglomerate San Miguel Corp. has signed a deal to potentially acquire a controlling stake in Express Telecommunications Co. Inc. (Extelcom).
San Miguel president Ramon S. Ang said under the agreement,” the seller has committed to clean up the company before we finally come in.”
San Miguel would buy the Extelcom shares from the seller – the group of UK-based fund manager Ashmore and businessman Roberto Ongpin, the same partners San Miguel also forged a deal with to gain majority control of oil giant Petron Corp.
The Ashmore-led group holds the single biggest shareholdings in Extelcom, a cash-strapped telecommunications firm formerly controlled by Bayan Telecommunications Inc. of the Lopez family.
Bayantel’s shareholdings have been trimmed to just 8.39 percent from 46.62 percent following the debt-to-equity swap as provided under Extelcom’s rehabilitation plan.
Extelcom is currently under corporate rehabilitation with a total outstanding debt of P9.017 billion.
Ang earlier said Extelcom would be merged with Liberty Telecom Holdings Inc., another struggling telecoms company, in which San Miguel already owns 32.7 percent.
Extelcom earlier said it is eyeing to spend $1.3 billion to build a network of 5,365 base stations over 10 years as it seeks to corner a substantial market share in the highly-competitive telecommunications industry.
“The company’s re-entry will give the Filipino consumers more choices,” said Luisito Sapiera, officer-in-charge at Extelcom.