PLDT Group reiterates interest in The STAR

MANILA, Philippines - The Philippine Long Distance Telephone Co. (PLDT) group, through its media arm Mediaquest, is emerging as a powerhouse in the media industry, as it continues to seriously look at more investments in both broadcast and print.

PLDT chairman Manuel Pangilinan emphasized that their recent acquisition of ABC Development Corp. (ABC-5), owner and operator of broadcast network ABC Channel 5, does not mean that they are abandoning plans to acquire a stake in leading print media organization Philstar Daily, which owns The Philippine STAR.

“They are not the same. One is television and the other is in the newspaper business,” he pointed out.

Mediaquest is the PLDT group’s corporate vehicle for media-related investment which is wholly owned by the PLDT Beneficial Trust Fund, in turn owned by PLDT. Mediaquest’s portfolio includes a 30-percent stake in BusinessWorld Publishing Corp., a 51-percent stake in Nation Broadcasting Corp. (NBC); and less than 10-percent stake in Lopez-led SkyCable Corp. It also owns a direct-to-home satellite television company which operates under the brandname Cignal.

Mediaquest director Ray Espinosa has said that the PLDT Group is still interested in acquiring a controlling stake in Philstar Daily, despite missing the previously set closing date deadlines, adding that the acquisition will be “concluded as early as practicable.”

“Print investment is part of multi-media strategy of Mediaquest,” Espinosa added.

MediaQuest has ongoing negotiations to acquire 87.5 percent of the media firm for P4 billion. After due diligence, deal negotiations were supposed to be finalized last April. The target date was eventually moved to July.

“I keep on saying the timetable but it does not happen. Probably I’ll be quiet and just announce it when it’s done,” Pangilinan said.

Espinosa said discussions are ongoing and that the deal will definitely push through. “We are currently in discussions with PhilStar owners regarding the structure, extent and pricing of Mediaquest’s investment,” he said.

Mediaquest’s latest acquisition is a 75 percent stake in ABC-5 and Primedia Inc., the broadcasting firm’s major block airtimer.

Aside from ABC5 and PhilStar Daily, Mediaquest is also looking at the possibility of acquiring other broadcasting companies within the region.

Pangilinan earlier revealed that following their acquisition of a 75-percent controlling stake in ABC-5, they have been approached by a number of investment banks from the region.

The offers from these banks include acquisition of television stations within the region, he said.

Pangilinan said that they are also in discussions with television stations owned by businessman Anthony Salim, chairman of Hong Kong-based First Pacific Co., on possible tie-ups. “This includes the possibility of Mediaquest investing in these TV stations,” he revealed.