Joint undertaking?

Joint undertaking?
In the absence of proper and entire disclosures on what Globe Telecom and PLDT intend to do with their acquisition, the general public have nothing to guess on.

What for are the telecom belongings of Liberty Telecoms that they in impact offered from San Miguel Corp. Via obtaining Vega Telecom Inc.?

Vega, in turn, owns ninety seven.Forty six percentage of Liberty Telecom’s incredible shares. This ownership makes Liberty Telecoms a subsidiary of Vega.

To summarize: Globe Telecom and PLDT personal Vega. Vega owns Liberty Telecoms. Liberty Telecoms ceded its telecom assets to Bell Telecommunication Phils. Inc., which used to be one in all its subsidiaries.

Thus, Globe Telecom and PLDT in a roundabout way own BelTel through their 50:50 percent ownership of Vega. Liberty Telecom may also participate in this three-way ownership because the owner of the telecom assets it transferred to BelTel. Said telecom property have been now not ceded to BelTel without spending a dime. Definitely, Liberty Telecoms would location fee on them via an unbiased appraisal.

The valuation is important whilst the time comes for the conversion of stated telecom belongings into equity in BelTel.

THE public stockholders of Liberty Telecoms Holdings Inc. (LIB)

THE public stockholders of Liberty Telecoms Holdings Inc. (LIB) are more likely to maintain complaining against the offer to buy them out at P2.20 in keeping with percentage, which to them is low compared with their acquisition price.

On the opposite hand, stockbrokers willingly standard the P2.20 rate-according to share offer due to the fact they are recognized more to take a position on listed shares and do now not make investments on them for the lengthy haul. Who among them would purchase a large block in the event that they didn’t recognise anything occurring within the boardrooms?

The public can most effective cry foul over the new proprietors’ provide of P2.20 in line with proportion. Even regulatory government can not interfere for them anymore.

Duediligencer can handiest sympathize with the public who had waited for LIB share charge to get better in due time. More than P11-billion deficit became an excessive amount of to undergo for a employer whose telecom belongings had long been in “hibernation”.

The public traders in LIB stocks could have been duped into speculating on the company’s telecom assets, a highly-priced lesson that they need to now not overlook.