Philippine Business Inquirer | January 3, 2011 | Doris Dumlao
MANILA, Philippines—San Miguel Corp. has expanded its presence in the highly competitive telecommunications business with the acquisition of a 40-percent interest in Eastern Telecommunications Philippines Inc. from a group led by former Trade Minister Roberto V. Ongpin.
San Miguel, through subsidiary Vega Telecom Inc., purchased 100 percent of the outstanding shares of stock of AGN Philippines Inc. (AGNP), which owned 40 percent of ETPI, the conglomerate said in a disclosure to the Philippine Stock Exchange Monday.
The deal turned San Miguel into the single biggest stockholder in ETPI, which used to be led by Ongpin along with British fund Ashmore. Ongpin’s group also holds a substantial stake in San Miguel Corp.
With the sale of AGNP by Ongpin’s ISM Communications Corp., the latter’s stake in the telco will be reduced from 77.7 percent to 37.7 percent.
But an industry source said San Miguel would also buy out the remaining stake held by ISM.
With this development, ETPI will become the third telco to be acquired by San Miguel after Liberty Telecommunications Holdings Inc. and Bell Telecommunications Inc.
The conglomerate is also working on the acquisition of Express Telecommunications Co.
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