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 25-year 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. — Denise A. Valdez