Listed firm keen on joining 3rd telco bidding
TRANSPACIFIC Broadband Group International, Inc. (TBGI) is looking to sell up to 40% of its common equity to foreign investors, as it prepares to join the bidding for the third major telecommunications player.
In a disclosure to the stock exchange on Thursday, TBGI said the board approved the company’s plan to raise funds equivalent to 40% of stockholders equity to foreign investors.
“The Chairman ( Arsenio T. Ng) informed the board of the need to raise funds from a private placement up to 40% of common equity from foreign sources to be able to participate in various opportunities in the telecommunication market brought about by directive of the government to have a 3rd telco in the Philippines,” the company said.
TBGI said it may participate in the third telco player selection as a member of a consortium of investors, or as part of a “Common Tower Investment Corp.” The Common Tower Investment Corp. could set up around 50,000 cell towers that can be leased to the third telco player.
A registered Clark Special Economic Zone ( CSEZ) enterprise, TGBI holds a 25year congressional telecom franchise for commercial telecommunications operations.
The company said it was also given the greenlight to establish a representative office in China, “with coordination and cooperation with a China consortium involved with telecoms and technology, the aim of which is to bring in Artificial Intelligence Initiative, Block Chain Technology, Asset- backed Initial Coin Offering, and Internet of Things technology.”
The Philippine government plans to have a third telco provider by the end of September or early October. For the past weeks, members of the oversight committee were conflicted between two versions of the terms of reference ( ToR) to be used for its selection.
The ToR backed by the Department of Information and Telecommunications Technology ( DICT) refers to a prospect’s highest committed level of service (HCLoS) as basis for awarding the frequency.
On the other hand, the Department of Finance ( DoF) is pushing for the ToR that allows the third telco slot to be auctioned off, letting the highest bidder win.
Last week, a public consultation with industry stakeholders showed their preference for the HCLoS ToR. —