Liberty Telecom's new rehab plan requires P7-B funds
abs-cbnNEWS.com | 07/02/2009 4:49 PM
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MANILA - Liberty Telecom has drafted a new rehabilitation plan that calls for a P7.15-billion capital spending budget over the next 10 years.
In documents submitted to the Philippine Stock Exchange, Liberty said that bulk or P5.11 billion of the total amount would be sourced from internal funds and the remaining would be infused by investors.
The company is spending the first P4.453 billion of its capital budget to build its network and wimax infrastructure while the rest of its investments will be made in the second or third year of operations following the approval of its rehab plan, it said.
In December 2006, the Makati City Regional Trial Court approved the rehabilitation plan of Liberty, but the company prepared a revised rehabilitation plan to attract new investors.
While it did not name the new investors, Liberty confirmed that it issued P1.523 billion worth of preferred shares to two subsidiaries of Qatar Telecom (QTel), the sole telecommunications provider in Qatar.
Liberty Telecom issued 175.113 million preferred shares to QTel's subsidiary wi-tribe Asia Limited and another 300.832 million shares to White Dawn Solution Holdings Inc., which is also controlled by QTel. White Dawn now owns 17 percent of Liberty while wi-tribe owns 9.9 percent of the company.
Earlier, QTel signed an agreement with diversified conglomerate San Miguel to explore opportunities in the Philippine telecommunication sector, particularly in wireless broadband and mobile communications.
San Miguel, which has been acquiring assets outside its original food and drinks business, intends to buy up to 49 percent of Liberty, it told the Philippine Stock Exchange previously.
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