PLDT plans to delist former Piltel

MANILA, Philippines - The Philippine Long Distance Telephone Co. (PLDT) said it plans to delist PLDT Communications and Energy Ventures Inc. (PCEV), formerly Pilipino Telephone Corp., from the local bourse but the current conditions for delisting may not augur well for the company.

In an interview, PLDT chairman Manuel V. Pangilinan said they would prefer to delist PCEV considering that 99.5 percent of the company is owned by PLDT’s wholly-owned wireless subsidiary Smart Communications, Inc.

“But you have to consider that the remainder is owned by 20,000 other shareholders which means that whether we delist it or not, the reportorial requirements remain the same. If that is the case, then PCEV may remain as a listed company. Right now, PCEV is in a state of limbo,” he explained.

Pangilinan said other countries have a much conducive condition for delisting compared to the Philippines.

PCEV’s reported net income for 2010 stood at P1.4 billion, a huge decline from its P17.9 billion earnings in 2009 but company officials said the 2009, figure included net income from discontinued operations of P16 billion.

Core net income, before exceptional, one-time items, stood at P2.1 billion for 2010 from P8.7 billion recorded in 2009. Core profit reported for 2009 still includes PCEV’s net income relating to its cellular business which was sold and transferred to Smart Communications in August 2009. Smart owns 99.5 percent of PCEV.

PCEV’s income is derived mainly from its direct equity share in the net income of Manila Electric Co. (Meralco) and its holdings in Beacon Electric Asset Holdings, Inc. PCEV owns 50 percent of Beacon, a special purpose company jointly owned by PCEV and Metro Pacific Investments Corp. (MPIC) whose sole purpose is to hold shares in Meralco, which presently amount to 392.5 million shares, equivalent to 34.8 percent of Meralco’s outstanding common shares.