Subject: [NEXTEL-1] Premiere takes 97% stake in Nextmobile for P6.58-B

From: [email-masked]
Date: Mon, 27 Oct 2003 21:59:44 -0500

The Philippine Star 
 
By Zinnia B. Dela Peña
The Philippine Star 10/28/2003 

Shareholders of Premiere Entertainment Productions Inc. have 
approved the company's planned acquisition of 97 percent interest in 
Nextmobile Inc. (formerly Nextel Communications Phils. Inc.) for 
P6.58 billion. 

In a disclosure to the Philippine Stock Exchange, PEP president and 
chief executive officer Anastacio P. Diaz Jr. said shareholders also 
approved the change in the firm's primary purpose from entertainment 
to telecommunications. In view of this, PEP will be renamed Net 
Communications Inc. 

The acquisition of Nextmobile will be done through the issuance of 
new PEP shares to be taken from the increase in its capital stock 
from P500 million to P7 billion. The new capitalization will consist 
of 14 billion common shares at a par value of P0.50 per share. 

The increase follows the reduction of PEP's authorized capital stock 
from P1 billion to P500 million by reducing the par value of its 
common shares from P1 to P0.50. The move is part of the company's 
capital restructuring efforts aimed at cleaning up its balance 
sheet. Nextmobile is owned by a consortium composed of Finnish, 
Swedish, American and Filipino entrepreneurs led by Mel Velarde. 

The acquisition of Nextmobile is in line with PEP's diversification 
into the telecommunications and information technology businesses to 
boost its income. 

In light of the continued slowdown in the movie-making industry 
since 1999, PEP had shut down its film production operations as well 
as its bingo activities and instead concentrated on the roving 
cinema and film distribution businesses. 

Nextmobile is similarly undergoing a major restructuring and will be 
concentrating on services different from what Nextel Philippines had 
focused on, which was in the area of trunked radio, pager and mobile 
phone services. 

The company earlier launched its wireless internet service, Nextel 
Online, which enables users to surf the internet as well as send and 
receive e-mail through their handsets. 

US-based Nextel International Inc., the parent firm of Nextel 
Phils., now has minimal ownership in the local company with 
Filipinos owning majority of the new firm.

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