JG Summit boosts PLDT stake to 11.23%

Philippine Long Distance Telephone Company (PLDT)

Gokongwei-led conglomerate JG Summit Holdings Inc. has invested $138.8 million to beef up its stake in local telecom giant PLDT Inc. by 3.26 percentage to 11.23 percent.

For JG Summit, this transaction is “a valuable investment since PLDT Inc. has historically paid good dividends,” the conglomerate told the Philippine Stock Exchange on Tuesday.

The conglomerate acquired around 7.047 million additional common shares of PLDT at a price of $19.70 per share through the purchase and conversion of American depositary receipts (ADRs) of PLDT.

A depositary receipt is a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange. PLDT’s ADRs are listed on the New York Stock Exchange.

JG Summit said the acquisition of the common shares of PLDT would not have any adverse effect on its financial condition.