JG Summit won't sell Digitel stake to other parties - Lance Gokongwei

MANILA, Philippines - Gokongwei-owned JG Summit Holdings Inc. is not contemplating on selling its majority stake in Digital Telecommunications Phils. Inc. (Digitel) to other parties, despite the long delay in government approval of the sale to Philippine Long Distance Telephone Co. (PLDT).

“We are still supportive of this transaction,” JG Summit president Lance Gokongwei said on the sidelines of yesterday’s ASEAN 100 Leadership Forum.

The National Telecommunications Commission (NTC) has 90 days or until late October to decide on the joint application of PLDT and Digitel seeking approval for the sale of an initial 51.5-percent stake in the latter to PLDT.

“We just have to wait. The government still has to assess it, they have 90 days. We just have to give them adequate time and information to make the proper decision,” Gokongwei said.

After the NTC failed to decide on the deal last Aug. 26, PLDT and JG Summit announced they are in joint consultation as to whether the date for the finalization of the transaction shall be extended further.

“The two parties shall consult their respective boards of directors and make a formal announcement as soon as practicable,” PLDT said.

The original closing date of the acquisition deal, originally targeted for June 30 was twice extended – to July 30, and then to Aug. 26 – due to prolonged disposition of the application for approval by the NTC.

Malacañang spokesperson Edwin Lacierda has said that the Aquino administration is still studying the deal.

For his part, NTC commissioner Gamaliel Cordoba said they are still working on a comprehensive review of the transaction “as we want to ensure that our eventual decision is in conformity with existing laws and would promote the national interest.”

Cordoba emphasized that their current review is still within the first month of the 90-day period within which the NTC is required by law to evaluate and decide upon petitions submitted for resolution. The memoranda of the parties were filed last July 27. 

“We will inform the public of our decision as soon as we complete the evaluation process,” he said.

Cordoba said in an interview that they are not bound by the deadline set by PLDT and Digitel to complete the transaction.

PLDT and Digitel filed their joint application for the approval of the sale to the former of an initial 51.55 percent of the outstanding shares of Digitel from the Gokongwei Group last April 27.

“What should have been a straightforward summary proceeding turned into a protracted proceeding as Globe Telecom and other oppositors raised extraneous matters, including a grant of additional frequency assignments to Globe as well as IP peering, and even sought for the suspension of the proceeding and disapproval of the transaction, arguing that PLDT’s foreign ownership exceeds the constitutional limit on the basis of the Supreme Court’s decision in the Gamboa case which has not even attained finality,” PLDT pointed out.

Digitel is the 100 percent owner of Digitel Mobile Philippines Inc., which owns the brand Sun Cellular. It also has a substantial fixed line and broadband business.