MANILA -Research firm CreditSights does not expect the class action suits filed in the United States against PLDT Inc. to firm up given the “small scale” financial interest claimed by the petitioners.
As such, the Fitch Group unit said the lawsuits should not greatly affect the Pangilinan-led company’s operations.
“Seeing the small scale of the alleged losses and the low participation rate, we see a dim chance that the [US] court will allow a formal case to be officially launched,” CreditSights said in a research note.
“In turn, we see a limited impact of the US SCA (securities class action) lawsuits on PLDT’s financials and operations, in line with our expectation,” it added.
Investors Sophia Olsson and Kevin Douglas—represented by The Rosen Law and Levi & Korsinsky LLP, respectively—are serving as the lead plaintiffs in the class action suits against PLDT. Prior to the filing of the petitions, the law firms had sought other investors to come forward.
Both Olsson and Douglas claimed to have lost a total of $262.92 as PLDT made “false and misleading statements” in connection with the P48-billion budget mess revealed in December last year.
Last month, PLDT asked the court to reject Olsson and Douglas’ appointment as lead plaintiffs due to “lack [of] sufficient financial interest in the outcome” of the lawsuits.
https://business.inquirer.net/397412/plaintiffs-in-us-suits-vs-pldt-contested
In the same report, CreditSights also noted that “corporate governance uncertainties” in PLDT “eased slightly” in recent weeks when the company named replacements for senior officers who left their posts on the heels of the budget debacle.
“While this allays some concern over near-term operational and business continuity uncertainties, we remain unsure of whether this is to be a long-term arrangement,” it noted.
New officials
Group controller Danny Yu was appointed as the new chief financial officer and chief risk management officer replacing Annabelle Chua, who went “on leave” following revelations in PLDT’s finances. In April, the company announced Chua “took an early retirement.”
https://business.inquirer.net/399327/new-cfo-promises-to-put-into-order-pldts-financial-affairs
Meanwhile, senior officials Roderick Santiago and Bernadette Salinas were assigned as officers in charge for network and procurement departments, respectively.
For the rest of the year, the research firm sees a stable credit position for PLDT on the back of mid-single digit growth projection for revenues and earnings before interest, tax, depreciation and amortization.
CreditSights said this was also supported by additional liquidity infusion with the receipt of P32.6 billion proceeds from tower sales this year. PLDT earlier sealed several tower sale and leaseback deals totaling P98 billion, with around P66 billion of the proceeds already registered in the books.
“While we acknowledge the risks of hot domestic inflation and strong mobile competition, we think earnings growth could be buoyed by resilient consumer demand and inorganic contribution from the acquisition of Sky Cable,” the think tank said. The Sky Cable purchase deal is currently undergoing review at the Philippine Competition Commission. INQ