MANILA, Philippines - The Securities and Exchange Commission (SEC) has approved the change in the corporate name of Philippine Long Distance Telephone Co. (PLDT) unit Pilipino Telephone Inc. (Piltel) to PLDT Communications and Energy Ventures (PCEV), which company officials said better reflects Piltel’s new business thrust.
Also approved was the change in Piltel’s primary corporate purpose and amendments to its secondary purpose as well as the reduction in the number of directors from 13 to 11.
“The amendment in the name and primary purpose is needed because the current ones are no longer reflective of Piltel’s new corporate purpose and the business in which it is engaged in,” the company explained.
Piltel president Napoleon Nazareno said the company is now a significant player in the energy industry as a result of its holdings in Meralco.
“Piltel’s investment should ensure that the PLDT Group will be in the best position to harness both operational and strategic synergies with Meralco,“ Nazareno added.
Earlier, Piltel chairman Manuel Pangilinan pointed out that while at present, Piltel is just a holding company for its direct and indirect stake in Meralco, they are currently reviewing what other assets will be placed under it or businesses it will be operating in the future.
However, Nazareno revealed that as a holding company for shares in Meralco, PCEV will likely be handling new synergy businesses being developed between PLDT and Meralco, such as broadband over power lines, prepaid electricity, among others.
At present, Piltel is 99.5 percent owned by Smart Communications, which, in turn, is wholly owned by PLDT. Pangilinan said they are still trying to acquire the remaining 0.5 percent in the hands of small shareholders.
Asked about plans to delist Piltel from the local stock exchange, Pangilinan stressed that this matter is still being reviewed, although in the past, he has said that it may no longer make sense for it to be publicly listed, considering that 99.5 percent is already owned by Smart.
Piltel’s reported net income for the first quarter of 2010 stood at P458 million, 86 percent lower than the P3.25 billion generated during the same quarter last year.
Core net income, before exceptionals and one-time items, declined to P470 million from P3.2 billion in the same period in 2009, mainly comprised of Piltel’s equity share in the net income of Meralco.
Piltel acquired its 20 percent investment in Meralco in July 2009. The P3.2 billion recorded in the first quarter of 2009 primarily represented Piltel’s net income relating to its cellular business which was sold and transferred to Smart in August 2009.
Starting the second quarter of 2010, Piltel’s financial results will reflect the equity accounting of its 50 percent share in Beacon Electric Asset Holdings.
Beacon is the special purpose company jointly owned by Piltel and Metro Pacific Investments Corp. (MPIC) whose sole purpose is to hold Piltel’s and MPIC’s shares in Meralco, which amount to 392.5 million shares, equivalent to 34.8 percent of Meralco’s outstanding common shares.