San Miguel moves to acquire BellTel

By Mary Ann Ll. Reyes
The Philippine Star

MANILA, Philippines - San Miguel Corp. (SMC) has reportedly shifted focus on Bell Telecommunications (BellTel) as a potential acquisition target following legal problems being encountered in its bid to acquire Express Telecommunications (Extelcom).

In an earlier interview, SMC president Ramon Ang told The STAR that they are still hoping to acquire Extelcom despite legal difficulties on the purchase.

SMC is in talks with a company controlled by businessman Roberto Ongpin for the acquisition of the latter’s stake in Extelcom. However, Marifil Holdings Corp., a firm controlled by Bayan Telecommunications, has questioned in court Transdigital Extel’s stake in Extelcom.

Lopez-controlled Marifil, which claims to still own 46 percent of Extelcom, said it will oppose the planned sale by TransDigital Extel to SMC of its stake in Extelcom and will continue to fight the alleged hostile takeover of Extelcom.

Marifil lawyer Ariel Tuybayan said they will pursue all legal remedies to reverse what they claim is an illegal dilution of their shares in Extelcom from 46 percent to eight percent. “Marifil is prepared to go all the way to the Supreme Court,” he added.

He pointed out that Marifil was deprived of its property in clear violation of the Corporation Code that requires the vote of shareholders holding at least two thirds of the outstanding capital stock. “How can corporate rehabilitation be abused to deprive a shareholder of its property without its consent?” he said.

Meanwhile, two of BellTel’s biggest publicly-listed shareholders – Liberty Flour Mills and South China Resources – have sold their stake in the telco to Two Cassandra-CCI Conglomerates, a shareholder of Liberty Telecoms Holdings which is partly owned by SMC.

Liberty Flour Mills informed the Philippine Stock Exchange that it is selling its investment in BellTel consisting of 600,000 common shares for P227.38 million to Two Cassandra-CCI.

Meanwhile, South China Resources also sold to Two Cassandra-CCI its 3.24 million shares in BellTel for P1.23 billion.

There have been speculations that BellTel will eventually be sold to SMC, which is looking at ways to expand its presence in the local telecommunications business. Read more...


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