Transpacific Broadband selling 40% equity to foreign investors

Transpacific Broadband Group International Inc. (TBGI) plans to sell as much as 40 percent common equity to foreign investors.

The company is raising funds to participate in the government’s third telco initiative.

In a regulatory filing submitted by TBGI vice president Paul Saria, the company said its board has approved the private placement.

“The chairman informed the board of the need to raise funds from a private placement, up to 40 percent of common equity from foreign sources, to be able to participate in various opportunities in the telecommunication market brought about by a directive of the government to have a third telco in the Philippines,” Transpacific Broadband said.

Under the draft terms released by the Department of Information and Communications Technology (DICT), companies vying for the third telecom slot in the must shell out at least P40 billion a year.

TBGI said it could participate in a consortium of third telco investors, or it may instead participate in a consortium which will lead the construction of communication towers in the country.

The company could also establish an office in China in coordination with a Chinese consortium in telecommunications and technology.

“The aim of which is to bring in Artificial Intelligence Initiative, Block Chain Technology, Asset-backed Initial Coin Offering, and Internet of Things technology,” it said.

The winning bidder for the third telco slot will be named before the end of the year, or around September, as “the best case scenario,” the department said earlier. —Jon Viktor Cabuenas/VDS, GMA News