Metro Manila (CNN Philippines, February 3) — Aside from China Telecommunications Corp., Dennis Uy’s DITO Telecommunity may court additional foreign investors to its group following the developments on the Public Service Act, a top official of the company said Thursday.
“Once it gets passed, it’s something that we can look into. We see it as positive [move] that you are opening up investments in telco space…,” DITO Chief Administrative Officer Adel A. Tamano said during a virtual briefing.
Strengthening network infrastructure of a telecommunications company is capital-intensive, he noted.
“If the local market cannot provide that [money] then foreign investors really are needed for that,” Tamano added.
The bill amending the Public Service Act is awaiting President Rodrigo Duterte’s signature. The measure seeks to ease foreign equity restrictions on various sectors.
The Senate and the House of Representatives on Wednesday ratified the bicameral conference committee report on the proposed amendments to the Public Service Act.
READ: Bill amending Public Service Act ready for Duterte’s signature
Tamano said that while there is no discussions yet for a possible injection of new capital from foreign investors, this might be “something the finance people are looking into.”
It was also not clear yet if the third telco will offer a debt-to-equity arrangement or sell its shares for potential investors.
“If one way to look at it—I don’t want to put the impression that we’re inclined—but… maybe [if we] get foreign investment, pwede na lumampas sa 40% (it can exceed 40%),” Tamano said.
“We do not have any conversation on that yet. We’re really focused on operations at this time,” he said.
Meanwhile, the current 40% stake of its backer, China’s telco giant, would not be affected by the proposed bill. Uy’s Udenna Corp holds 60% in the company.
Even if the bill gets Duterte’s signature, China Telecom would still be barred from hiking its interest in DITO.
“Foreign state-owned enterprises which own capital prior to the effectivity of this law are prohibited from investing in additional capital upon the effectivity of this act,” the proposed law stated.
