SC holds firm in ruling on PLDT foreign ownership
MANILA, Philippines—The Supreme Court stood pat on its June 28, 2011 decision that changed the calculation in determining foreign ownership of public utilities particularly the Philippine Long Distance Telephone Company (PLDT)
High Court sources said majority of the justices concurred with the resolution written by Senior Associate Justice Antonio Carpio in dismissing the appeal filed by PLDT chairman Manuel V. Pangilinan.
In the recent ruling, the high court reiterated its earlier decision that the foreign ownership cap under Section 11 Article 12 of the Constitution meant that “capital” should be the shares of stock entitled to vote or the common shares and not to the total outstanding capital stock.
PLDT, in their appeal said that the high court’s ruling would discourage foreign investors.
It added that it would also lose its ability to retain its franchise which might jeopardize connection with telecommunications’ company.
But the high court is not convinced. During the oral argument held in Baguio City last April, the high court justices said that for a company to be considered “Philippine national,” it should be owned by a majority of Filipinos.
The case stemmed when lawyer Wilson Gamboa filed a petition with the Supreme Court , in his petition said since foreign interests, notabley First Pacific Company own at least 61.8 percent of PLDT’s outstanding common stocks, PLDT can no longer be regarded a Philippine national.
Gamboa said, First Pacific Co., is the Hong Kong based investment firm of the Salims of Indonesia and NTT DoCoMo, the wireless subsidiary of NTT of Japan.
Gamboa filed a petition for injunction and annulment on the sale of the P26.5 billion worth of PLDT shares to First Pacific in 2007.
