PLDT expects P2.125-B from CURE divestment
MANILA, Philippines - Local giant Philippine Long Distance Telephone Co. (PLDT) group wrote the government regulator that it expects to be paid at least P2.125 billion to recoup its investment in Connectivity Unlimited Resource Enterprises, Inc. (CURE).
This amount is more than double the P1 billion PLDT has previously said it expects from surrendering the 3G license and CURE to the National Telecommunications Commission (NTC), and makes it expensive for companies, like Ayala-led Globe Telecom Inc. and conglomerate San Miguel Corp, that are eyeing the frequency.
“Please note that the cost recovery amount to which the PLDT Group is entitled, cannot be less than P2,125,000,000.00 to enable the PLDT Group to recover its investment in CURE,” Smart Communications Inc. legal and regulatory department head Enrico Español wrote in a letter to the NTC.
Español explained that this includes PLDT's total cost of equity investments in CURE, advances from mobile unit Smart Communiations for operating requirements and advances from stockholders and associated funding costs.
After buying CURE from the Ongpin family in 2008, the PLDT group surrendered CURE to the NTC last July 27 to comply with the conditions the NTC has set when it approved PLDT’s acquisition of Digitel in October 2011.
NTC has until January 2013 to bid it out CURE and its 3G license.