SMC’s Vega Telecom Acquires AGNP
San Miguel Corp. (PSE: SMC), through its subsidiary Vega Telecom Inc. (Vega), has acquired 100% of the outstanding and issued shares of stock of Australian Gigahertz Network Philippines Inc. (AGNP) comprising of one hundred thousand (100,000) common shares with a par value of P100.00 per share. The Sale Shares were registered in the name of ISM Communications Corp. (PSE: ISM) and the consideration for the Sale Shares was based on the enterprise value of Eastern Telecommunications Philippines Inc. (ETPI), inclusive of the existing businesses, investments and telecommunications service facilities of ETPI.
The Share Purchase Agreement, dated December 30, 2010, executed by Vega contained confidentiality provisions. In this regard, Vega is not in a position to disclose the consideration for the Sale Shares and the terms of payment of such consideration. According to a disclosure by SMC to the Philippine Stock Exchange (PSE), the said consideration does not constitute a material transaction, considering the same is less than 10% of the total book value of the company. It added that the company maintains utmost confidentiality with regard to the details of the transaction due to the fact that the company’s venture in the telecommunications business is at its inception and any disclosure of information may materially impact the business strategies of Vega, considering the size of the current players in the telecommunications business.