24th October 1997
FIRST PACIFIC'S PHILIPPINE TELECOMS AFFILIATE TO DEFER IPO
First Pacific Company Limited's Philippine flagship, Metro Pacific Corporation, announced today that Smart Communications, Inc., its integrated telecommunications subsidiary, has elected to postpone its Initial Public Offering (IPO) due to continued uncertainty in the Philippine and international financial markets.
Metro Pacific's President, Napoleon L. Nazareno, said: "We are of course disappointed that market volatility has continued to delay Smart's IPO but we are pleased that the company continues to perform well ahead of expectations.
"Smart remains the Philippines' premier integrated telecommunications company and we stay committed to it completing an IPO by the year 2000 as required under the terms of its franchise. The precise timing, however, will eventually be determined by market conditions.
"In the meantime, Metro Pacific and Smart's other shareholders, which include Japan's NTT and First Pacific, will benefit from its continued profit growth without the dilution in earnings that an IPO would invariably bring. Smart will continue with scheduled expansion programs for both its cellular and fixed-line networks. The funding for these network expansion programs will be required as their buildouts progress, and Smart's major shareholders have committed to provide such funding as and when it is needed."
Smart has seen its number of cellular subscribers rise to 560,000 from 328,000 at the end of last year, representing 45 per cent of the domestic market. The cellular network has in excess of 325 cell sites giving it the widest coverage of any Philippine cellular company. Its installed fixed-line capacity exceeds 520,000 lines and is on target to meet its franchise fixed-line buildout requirement of 700,000 lines.
First Pacific, which holds a 66 per cent interest in Smart, principally through Metro Pacific, is a Hong Kong based, Asian-oriented conglomerate with operations in the four core areas of Marketing & Distribution, Telecommunications, Property and Banking.
For further information, please contact:
| Rene Banez Group Vice President, External Affairs Metro Pacific Corporation |
Tel: (632) 811 0041 |
| Robert Sherbin Group Vice President Corporate Communications First Pacific Company Limited |
Tel: (852) 2842 4380 |
Company information can also be accessed on:
| Web Site: |
http://www.firstpacco.com http://www.irasia.com/listco/hk/firstpac |
E-mail: info@firstpac.com.hk |
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