Dennis Uy-led Udenna Corp. on Friday said it has signed a $5.4-billion agreement with China Telecommunications Corp. to formally develop the country’s third telco Mislatel consortium.
Udenna together with another Uy-owned Chelsea Logistics Holdings Corp. and China Telecom “formalized through an investment agreement their mutual undertakings and obligations to develop and operate the Philippines’ third telecommunications service provider.”
“The signing of the investment agreement reiterates the group’s commitment to take up the challenge of providing better telecommunications services in the country,” Udenna said in a statement on Friday.
Udenna, Chelsea, and China Telecom comprise the Mislatel consortium - the winning bidder for the government’s search of a new major player in the country’s telecommunications sector in November 2018.
The companies had previously committed to invest P279 billion or $5.4 billion in Mindanao Islamic Telephone Co. Inc. (Mislatel) —the franchise holder and corporate entity that will receive the equity infusion from Udenna, Chelsea, and China Telecom.
The signing was done at the Second Belt and Road Forum for International Cooperation (BRF) held in Beijing, China, according to Udenna.
Uy, chairman of Udenna and Chelsea, and Ke Ruiwen, chairman of China Telecom, signed the investment deal on behalf of their respective companies.
“This is a historic occasion,” Uy said.
“This is another step forward in realizing Udenna’s vision to improve the lives of Filipinos. Everything that we do is about making lives better not just for this generation, but for the next generation. And that is happening here. Thank you to our partners and to all for being a part of this journey,” he added.
China Telecom welcomed the partnership “as it aims to promote collaboration by advancing the availability of new and emerging technologies,” according to Udenna.
“This landmark investment agreement solidifies the Philippine government's commitment to improving the country’s telecommunications industry through the entry of a new telco operator that would challenge the dominance of the two giant incumbents amid persistent calls from consumers for improved services,” it added.