PLDT raising P10.5 billion from sale of Rocket stake

MANILA, Philippines — PLDT Inc. is selling more than half or 67.4 percent of its shares in Rocket Internet SE under a buyback program for P10.5 billion. 

In a disclosure to the Philippine Stock Exchange, PLDT said its indirect subsidiary PLDT Online Investments Pte. Ltd. has committed to accept the public share purchase offer of Rocket for at least 6.8 million shares or approximately 67.4 percent of the total number of Rocket shares directly held by PLDT Online.

Earlier, Rocket announced the buyback of up to 15.47 million Rocket shares through a public share purchase offer against payment of an offer price in the amount of 24 euro per share. 

PLDT, through PLDT Online, holds a 6.1 percent ownership stake in Rocket. 

“The final number of PLDT Online tendered shares accepted by Rocket will be determined after the offer period which is expected to end on May 2,” PLDT said.

If greater than 15.47 million Rocket shares are tendered, PLDT said the Rocket shares to be sold by PLDT Online would be reduced proportionally. 

PLDT chairman and chief executive officer Manuel V. Pangilinan earlier said the telco intends to sell its stake in Rocket Internet to fund this year’s capital expenditures.

Aside from the sale of PLDT’s position in Rocket, he said this year’s capex would likewise be funded by internally generated funds, as well as proceeds from the sale of receivables from the sale of the company’s stake in Beacon Electric Asset Holdings Inc. to Metro Pacific Investments Corp.

PLDT has set its capex at a historic high of P58 billion this year. 

Of this year’s capex, the bulk or 53 percent would be spent on the fixed network business requirements as PLDT embarks on an aggressive rollout of fiber broadband service to cater to growing demand for digital services of customers. 

This year’s capex is also intended to enable PLDT and wireless unit Smart Communications Inc. to overhaul information technology systems and platforms to support network management and business operations to provide more efficient services to customers. 

PLDT has earlier said, it also expects to retain this year’s capex level for 2019 and 2020.