Two days ago, there was an 18% spike in the price of DigiTel because of rumors of it being acquired, supposedly by San Miguel who denied it. Unfortunately, I had let go of DGTL a few months back because it wasn’t moving and I figured I’ll just get back soon as I have some cash back. Unfortunately again, I never got back. Besides, I wouldn’t have been able to take advantage of the spike as my horizon is more than a single day.
I just consoled myself that at least I’m in position if it is indeed San Miguel or if it is PLDT who eventually acquires DigiTel. San Miguel has been diversifying into infrastructure, power, and communications. PLDT, on the other hand, has the biggest market share in the communications industry. And if it was Globe? Well, can’t have it all, right?
But today, I read that PLDT had announced that they are acquiring a majority stake in DigiTel via a share swap. Essentially in exchange for 27M new PLDT shares valued at P2500, PLDT acquires 3.28B shares of DGTL valued at P1.6 per share, 18.6B convertible bonds valued at P1.6 per share converted, and P34.1B in debt. Total value of the transaction is P69.2B. Nice!