There are many legal impediments that embedded in acquisition of Digitel Telecommunications Philippines Inc. (Digitel) by the Philippine Long Distance Telephone Co. (PLDT). So, the closing date of taking over Digitel was postponed.
In a separate statement, the two tycoons still express their commitment in pursuing the P74.1-billion deal.
“The parties remain committed to this deal since it stands to bring substantial benefits not only to the shareholders but also to the consumers and the general public who will all benefit from the combined expertise of the PLDT group and Digitel,” PLDT chair Manuel V. Pangilinan said.
While pursuing the P74.1 billion deal of PLDT and Digitel, another legal matter came into the middle. When, Supreme Court ordered PLDT a probe into the PLDT’s ownership structure. The company was said to be violating the 40% foreign ownership restriction for public utility companies. However, the CEO of PLDT, Pangilinan, assures that foreign ownership of PLDT is way below 40%.
The two companies are still confident with the positive outcome regarding legal issues that government want them to answer.