human rights

PLDT calls for meeting over foreign ownership issue

Rappler.com
The creation of new preferred shares is meant to comply with Supreme Court's decision on foreign ownership issues

MANILA, Philippines – The country’s largest telecommunications group has called for a special shareholders’ meeting to issue new shares following court decision over foreign ownership issues. 

In a disclosure to the stock exchange on Monday, Jan. 9, 2012, Philippine Long Distance Telephone Co. (PLDT) said the its shareholders’ meeting will be on March 22, 2012 and meant to vote on the creation of voting and non-voting preferred shares.

The PLDT board approved the creation of preferred shares with full voting rights in July after the Supreme Court ruled that PLDT’s non-voting preferred shares would not be part of the calculation of its total foreign ownership.

PLDT has appealed the ruling since excluding the non-voting preferred shares means it will breach the 40% foreign ownership cap required of utility firms.

Should the Supreme Court uphold its ruling, the telco giant plans to create 150 million voting preferred shares and 807.5 million non-voting preferred shares with full voting rights and par value of P1 each.

These are subject to shareholders’ approval. PLDT said shareholders as of Jan. 24, 2012 will receive notice about the meeting.

Hong Kong-based First Pacific Co, as well as JPMorgan Asset Holdings and Japanese firms NTT Docomo Inc. and NTT Communications are among the foreign owners of PLDT shares. – Rappler.com