PT&T eyes PSE return following turnaround
PHILIPPINE Telegraph & Telephone Corp. (PT&T) on Friday said it wanted to resume trading on the Philippine Stock Exchange (PSE) after a suspension that has lasted nearly two decades.
In a statement, the company said it was “actively pursuing” the move.
Shares of PT&T were last traded on Dec. 9, 2004, when the stock closed at P0.33 per share. The company had a public float of 29.95 percent prior to the trading suspension.
While the PSE has acknowledged that the company no longer faces capital deficiency, PT&T conceded there were still pending items to address with regard to a rehabilitation plan.
“While we cannot provide a specific date at this time, we are diligently fulfilling the requirements outlined in our rehabilitation plan,” PT&T President and CEO James Velasquez said.
“By adhering to the requirements set forth in the plan, PT&T aims to demonstrate its commitment to financial stability and regain its position as a trading entity on the exchange,” he added.
“Our immediate goal is to secure the necessary approvals from the PSE to resume trading as soon as possible.”
In November 2023, the Securities and Exchange Commission (SEC) greenlit the company’s increase in its authorized capital stock to P12.6 billion from P3.8 billion.
“This increase facilitated the P8.9 billion debt-to-equity conversion, paving the way for the issuance of preferred shares (Series “A,” “B,” and “C”) as outlined in the rehabilitation plan,” PT&T said.
“Furthermore, it enabled the partial settlement of statutory obligations, salaries, wages, and other employee benefits from the escrow accounts as of December 2023,” it added.
The telco said the successful debt-to-equity conversion enabled it to eliminate a total of P9.3 billion in capital deficiencies, resulting in a substantial decrease in liabilities and a strengthened capital position.
PT&T posted a net income of P7.9 million in 2023, a turnaround from the net loss of P14.2 million in 2022. Gross revenues amounted to P617.38 million last year, up from P583.87 million in 2022.
PT&T also said that it had engaged the services of one of the world’s largest financial advisory groups — the company was not identified — for a planned fundraising.
“With our fundraising initiative, we anticipate a substantial enhancement of our capacity to deliver reliable, streamlined, and sustainable broadband and IT services,” the PT&T chief said.
“This enhancement will not only benefit the Calabarzon region but also extend nationwide over the next few years, meeting the growing demand for connectivity in the country,” he added.
PT&T has a network reach of 28,266 fiber kilometers in highgrowth areas, covering almost 40 percent of the Philippine population.
The company holds a 25-year national legislative franchise, which allows it to establish, maintain and operate both wired and wireless telecommunications systems for domestic and international communication.