The new investors of Philippine Telegraph & Telephone Corp. are optimistic on resuming trading of the shares at the Philippine Stock Exchange this year to raise fresh capital for a planned expansion and its bid to become the third major telco player.
PT&T said in a statement it completed all the requirements set by PSE for the lifting of the voluntary suspension trading of its 800 million common shares. PT&T shares have been voluntarily suspended since Dec. 13, 2004.
“Having fulfilled the requirements set by the PSE, PT&T should be allowed to resume trading and enact future plans of the new shareholders and management team,” PT&T chief operating officer Miguel Bitanga said.
Menlo Capital Corp., jointly owned by Nickel Asia Corp. founder Salvador Zamora II and businessman Benjamin Bitanga acquired substantial interest in PT&T from Republic Telecommunications Holdings Inc. in August 2017.
“Whether from a perspective of compliance to the PSE or based on purely economic/market driven benefits, there should be no reason why the company should be prevented from bringing the publicly traded shares into play again, and eventually raising capital to fund future plans, both within and outside of the fixed broadband space,” Bitanga said.
Shares of PT&T were last traded on Dec. 9, 2004 when they closed at P0.33 apiece.
PT&T president and chief executive James Velasquez said the resumption of trading on the company’s shares would also boost PSE’s market capitalization by several billion pesos.
Velasquez said the increased volume would be beneficial to both the bourse and investing public.
The lifting of suspension would also allow the entry of new investors into PT&T for its bid to become the third telco player in the Philippines’ telecommunication industry, Velasquez said.
He said the company had the underlying assets and existing business to support its shares as well as competent management team and positive growth outlook.
Velasquez said denying its request to lift the trading suspension would be detrimental to all creditors of PT&T, which recently secured an approval from the court to exit corporate rehabilitation.
The Makati City regional trial court branch 66 approved the request of PT&T to exit from rehabilitation on Aug. 2018, subject to compliance with certain requirements in line with the approved rehabilitation plan.
Under a court-approved 14-year rehabilitation plan, the P8.8-billion debt from its creditors would be paid in redeemable serial preferred shares of PT&T. The company’s rehabilitation plan was approved in 2011.
PT&T reported a P37-million net income in fiscal year ending June this year from a net loss of P27 million in the same period last year.