PLDT confirms acquiring majority stake in PhilStar
MANILA - Philippine Long Distance Telephone Co (PLDT) on Wednesday confirmed that it is acquiring more shares in Philippine Star.
"We confirm that Hastings Holdings Inc, a 100 percent subsidiary of Mediquest Holdings Inc, which in turn is a wholly owned entity of the PLDT Beneficial Trust Fund, has signed an agreement to acquire an additional equity interest in The Philippine Star," PLDT said in a disclosure to the Philippine Stock Exchange.
When the transaction closes, Hastings' stake in PhilStar increases to 51 percent from the existing 20 percent.
PLDT chairman Manuel V. Pangilinan last Monday told reporters that his group will acquire an additional 40 percent interest in PhilStar, adding that a shareholders' agreement had been signed Friday last week.
Sought for comment, PhilStar president Miguel Belmonte said the PLDT group on Monday night made a partial payment for the additional shares.
Asked how big a stake the PLDT Group is acquiring, Belmonte said, "I’m just speculating, but I believe the MVP Group will be offering to buy additional shares from other shareholders.â€
"We will not be selling additional shares as we intend to maintain a 20 percent stake [in PhilStar]," Belmonte said.
Despite its majority stake in the newspaper, the PLDT Group gave its founders "complete editorial independence," Belmonte said.
Before the recent deal, the Belmonte family owned 51 percent of the newspaper, while other individuals held the remaining shares.
Besides the flagship publication, the Belmontes also publish the tabloids Pilipino Star Ngayon and Pang-Masa. In Cebu, they control the island’s oldest English-language newspaper, The Freeman, as well as the tabloid Banat News.
The Philippine Star group has printing facilities at the Port Area in Manila, Quezon City, and Cebu.
The Belmonte family is also minority owner of People Asia magazine, a venture with the Cojuangco family.
Data from the Securities and Exchange Commission show that PhilStar posted a net income of P194.97 million in 2011, higher than the P168.23 million in 2010. Its gross revenues amounted to P2.35 billion in 2011, up from P2.25 billion in 2010.
Besides PhilStar, MediaQuest also owns TV5, Cignal TV and BusinessWorld. MediaQuest also has a 10 percent stake in Philippine Daily Inquirer.
The PLDT Group's investment in media is part of its convergence strategy to provide more content amid flagging revenues from the traditional telecom business.
http://www.interaksyon.com/business/83989/pldt-confirms-acquiring-majority-stake-in-philstarPlease delete / lock if posted
