SanMiguelbuysoutQatarpartnerinLibertyByDaphneJ.MagturoReporter

SANMIGUELCorp.(SMC)willpayP5.75

billionincashtobuyoutitsQatarbased

partnerinitssubsidiaryLibertyTelecomsHoldings,Inc.(LTHI).

InadisclosuretothePhilippineStock

Exchangeyesterday,SanMiguelsaiditswhollyownedsubsidiaryVegaTelecom,Inc.boughtatotalof426.8millioncommonand1.53billionpreferredsharesheldbyQtelWestBayHoldingS.P.C.175.11millionpreferredsharesfromWiTribe

AsiaLtd.and1.21billionpreferredsharesfromWhiteDawnSolutionHoldings,Inc.

Allthreecompaniesusedtoholdacombined51.01%stakeinLibertyTelecoms,whichoffers4Ginternetto

theconsumerandcorporatemarketsthroughWitribe.

SanMiguelwillpayP2.20apieceforthecommonsharesandP1.65eachfor

thepreferredshares.SharesinLibertyendedTuesdaytradingatP2.20apiece,downbytwocentavosor0.90%.

"FullpaymentoftheconsiderationshallbemadeuponcompletionbyVegaofitstenderoffer,"thedisclosureread."InaccordancewiththerulesonManda

toryTenderOffer,VegashallpurchaseallvalidlytenderedsharesheldbythepublicunderthesametermsandconditionsastheTransaction."

SanMiguel'sboardapprovedthetransactiononJuly14,andallpartiesannounced

thattheyhavesigneddefiniteagreements

forthesharesaleonJuly20.Theconglomeratesaid"Vega

decidedtoacquiretheirsharesduetotheexitofthecompaniesfromtheirinvestmentinLTHI."

"Qtelhadwantedtodivest.Theyhavebeenmanagingthattelcobusinessforalongtimebutit'snotprofitable,"SanMiguelPresidentandChiefOperatingOfficerRamonS.AnghadsaidinFilipinoonJune20."Butwe'renotinahurrytoreplacethemwithanewpartner.Manyareinterestedbutwehaveyettomakeadecision."

LibertyTelecomsfiledapetitionforcorporaterehabilitationinAugust2005,afewmonthsafteritdecidedtosuspendbusinessoperationsduetolackofcapital.ItexitedrehabilitationonMay12thisyear,

aheadoftheoriginaltargetofDec.12,2016.

LibertyTelecomsnarroweditsnetlossinthefirstquarterby32%yearonyeartoP210.16million.Grossrevenuesdippedby3.7%toP77.25million.

Aspartoftheconsolidationofitstelcobusinesses,Vegawillalsobuy100%equityinTransDigitalExcel,Inc.(TDE),whichholdsa78.45%stakeinExpressTelecommunicationsCompany,Inc.(Extelcom).Vegawillalsoacquirethe100%equityinterestinMultiTechHoldings,Inc.heldbyHighFrequencyTelecommunications,Inc.,SanMiguelsaidinseparatedisclosuresyesterday.

Theconglomeratesaidtheacquisitionsare"inlinewiththeinvestmentsofSMCin

thetelecommunicationsindustry."

PEOPLEreadtextmessagesontheirmobilephones.SanMiguelCorp.hasbeenconsolidatingitsstakesinthetelecommunicationsbusiness,withaplantoenteranindustrythatislargelydominatedbytwotelcogiants.

Headline San Miguel buys out Qatar partner in LibertyMediaTitle Business WorldDate 29 Jul 2015 Color Full ColorSection Corporate News Circulation 107,597Page No 4ofS1 Readership 107,597Language English ArticleSize 203 cmJournalist Daphne J. Magturo AdValue PHP 46,349Frequency Daily PR Value PHP 139,047