LISTED company MRC Allied, Inc. is set to acquire 500 million common shares in Philippine Telegraph and Telephone Corp. (PT&T) to mark its venture into information and communication technology.
“Our partnership with PT&T will result in clear synergies to achieve MRC’s long-term strategic initiatives,” MRC President and Chief Executive Officer Augusto M. Cosio, Jr. said in a statement.
In separate disclosures to the Philippine Stock Exchange on Tuesday, the companies said they had signed a memorandum of agreement covering the sale of the shares with a par value of one peso apiece.
“Looking beyond our current footprint, the extensive reach of MRC through its diversified portfolio opens more opportunities for PT&T to serve new markets,” PT&T President and Chief Executive Officer James G. Velasquez said.
“This development is expected to pave the way for both companies’ expansion and strategic plans, as they seek to capitalize on the rapidly growing digital transformation opportunities in the country today,” the PT&T disclosure read.
According to the companies, the acquisition represents a significant stake in the telco company and will enable MRC to use PT&T’s facilities for its business venture.
On the part of PT&T, the entry of MRC is seen to strengthen its ability to provide reliable, efficient, and sustainable broadband and IT services in the Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) area.
MRC’s planned investment in PT&T is also in line with the telco company’s preparation of raising $200 million to $300 million for the upgrade of its network infrastructure.
On Tuesday, shares in MRC climbed by 17.65% to P0.28 apiece, while shares in PT&T closed unchanged at P0.33 each. — Justine Irish D. Tabile
