Filipino conglomerate Now Corp ups stake in Now Telecom

Filipino conglomerate Now Corp ups stake in Now Telecom

Publicly-listed Filipino telecom, media, and tech conglomerate Now Corporation has increased its stake in affiliate, Now Telecom Company Inc. (NTCI), to prepare for the global post-pandemic turnaround.

Now Telecom had previously offered its enterprise clients pre-5G broadband speeds of up to 2 Gbps. According to the company, the goal is to bring this service to consumers via fixed wireless access and cellular devices.

The Makati-based group decided up its shareholding to 24.23% from 19.00% after NOW Telecom’s franchise was extended by a further 25 years (starting in 2018) by the National Telecommunications Commission (NTC).

Businessman Mel Velarde’s Now Corp. provides broadband and information technology services. It said in a stock exchange filing that it would acquire shares in Now Telecom by converting its existing down payment of P130.5 million and a deposit of P49 million. In addition, we plan to underwrite 1 million shares for 600 pesos per share or a total of 600 million pesos.

The telco is setting the stage for its own public listing as well as its fifth-generation (5G) network rollout after the government extended its license to operate a cellular mobile telecommunications system (CMTS).