The plan, if fulfilled, will allow San Miguel to control nearly three-quarters of the telco on top of the conglomerate’s existing stake in Liberty Telecoms Holdings, Inc.
This, after San Miguel, through wholly owned telecom unit Vega Telecom, Inc. already purchased last Dec. 30, 2010, 100% of A.G.N. Philippines, Inc., which had owned a 40% stake in Eastern Telecommunications.
“We’re still studying it... [but] yes, we’re interested,” San Miguel President Ramon S. Ang told reporters after the annual stockholders’ meeting of Manila Electric Co.
San Miguel owns at least a 27% stake in Meralco.
Mr. Ang said the purchase of ISM Communications’ remaining stake will “most likely” be done through Vega Telecom.
Eastern Telecommunications provides data, voice and Internet services through fixed lines to business process outsourcing firms.
When asked if he plans to consolidate Eastern Telecommunications with his other telecom unit, Liberty Telecoms Holdings, Inc., Mr. Ang merely said no.
Liberty Telecoms, which was a dormant listed firm prior to Qatar Telecom and San Miguel’s investment in 2009, focuses on wireless broadband services. Unit wi-Tribe Telecoms, Inc. launched its 4G broadband service in February 2010.
Last week, ISM Communications’ President Eric O. Recto said the firm will be divesting its shares in Eastern Telecommunications and European information technology company Acentic.
The firm will be selling its 37.7% stake in Eastern Telecommunications and 32.5% stake in Acentic for an undisclosed amount. As of end-2010, the firm’s stake in the two companies had a book value of around P1.8 billion.
ISM Communications swung to a P3.19-million profit in the first quarter from its P1.72-million loss.
San Miguel, for its part, more than doubled its consolidated net income to P7.14 billion in the first quarter from year-ago levels.
