PLDT Communications and Energy Ventures, Inc. (PCEV) was incorporated in the Philippines with limited liability on July 18, 1968, and is listed on the Philippine Stock Exchange (PSE) in July 1995.
Until 1991, PCEV’s sole business was providing fixed line telecommunications services in eight (8) cities and municipalities in the Philippines. In April 2000, PCEV launched a digital prepaid cellular service, under the Talk ‘N Text brand, using the Global System for Mobile Communications (GSM) platform of Smart Communications, Inc. (Smart).
In June 2008, PCEV transferred its fixed line business to Philippine Long Distance Telephone Company (PLDT), a company incorporated in the Philippines, and its GSM business to Smart in August 2009.
PCEV was previously known as Pilipino Telephone Corporation until May 25, 2010 when the Philippine Securities and Exchange Commission (SEC) approved the change in its corporate name, as well as other amendments to the Company’s Articles of Incorporation as discussed in the section below on Amendments to Articles of Incorporation.
PCEV is 99.5 percent-owned by Smart as of December 31, 2010. Smart is wholly owned and controlled by PLDT.
As a result of outsourcing all its activities to PLDT and its subsidiaries (collectively, the PLDT Group), aside from its officers, PCEV has no employees as of December 31, 2010 and 2009.
PCEV’s registered office address is 25th Floor, SMART Tower, 6799 Ayala Avenue, Makati City.
Change in Business Direction
On June 30, 2009, PCEV’s stockholders approved the investment of corporate funds in the amount of P=20,070.0 million or P=90 per share, in 223.0 million shares of stock representing approximately 20 percent of the outstanding voting common stock of Manila Electric Company (Meralco).
Meralco is the largest electric power distribution company and the largest private sector utility in the Philippines. It is incorporated in the Philippines and is subject to the rate-making regulations and regulatory policies of the Philippine Energy Regulatory Commission. Its subsidiaries are mainly engaged in engineering, construction and consulting services, information systems and technology, real estate, insurance and other electricity-related services.
The acquisition of a stake in Meralco, which was completed on July 14, 2009, is in line with the PLDT Group’s strategic investment plan that could lead to significant opportunities for operational and business synergies and result in new revenue streams and cost savings for both PLDT Group and Meralco.
The stockholders also approved in the same meeting, the sale and transfer of PCEV’s GSM business and assets to Smart. The sale and transfer took effect on August 17, 2009.
On March 30, 2010, PCEV transferred 154.2 million of its Meralco shares to Beacon Electric Asset Holdings, Inc. (Beacon), formerly Rightlight Holdings, Inc., a jointly controlled entity of PCEV and Metro Pacific Investments Corporation (MPIC), for the purpose of consolidating ownership interest of PCEV and MPIC in Meralco. As at December 31, 2010, Beacon held 392.5 million shares of stock representing approximately 34.8 percent equity interest in Meralco.
These transactions transformed PCEV from a telecommunications service provider into a holding company, with its investment in 50 percent equity interest in Beacon as its primary asset. It also has 68.8 million remaining Meralco common shares equivalent to 6.1 percent equity interest.