PLDT Global Corp. (PGC), the international sales and marketing arm of the Philippine Long Distance Telephone Co. (PLDT) Group, and Malaysia’s Celcom Axiata Bhd. on Wednesday entered into a shareholders’ agreement to establish a mobile virtual network operator (MVNO) in Malaysia.

The MVNO is an entity that provides mobile voice and data services to end-users through commercial agreements with licensed mobile network operators.

Under the agreement, Celcom and PGC will hold 49-percent and 51-percent stakes, respectively, in PLDT Malaysia Sdn. Bhd., which will offer mobile prepaid services under the Smart Pinoy brand.

“The issued and paid-up share capital of PLDT Malaysia shall be 6 million ringgit divided into 6 million PLDT Malaysia shares of which Celcom and PGC will subscribe in cash in the ratio of 49:51,” Axiata Group Bhd., the parent firm of Celcom, said in a disclosure to Bursa Malaysia on Wednesday.

Celcom’s 49-percent interest in PLDT Malaysia is valued at 2.94 million ringgit and will be funded through internally generated funds.

“The investment in PLDT Malaysia is to allow Celcom to have an equity and management participation in the MVNO business contemplated by the parties,” Axiata said.

PLDT Spokesman Mon Isberto said on Wednesday PLDT Malaysia was put up in order to execute the agreement it entered into with Celcom.

PLDT Malaysia was incorporated in Malaysia in July. Its issued and paid-up share capital currently stands at 2 million ringgit. PLDT Malaysia will be the vehicle in which the business contemplated under the joint venture between Celcom and PGC will be operated.

The board of PLDT Malaysia will consist of five directors, of whom two shall be appointees of Celcom; the rest will be appointees of PGC.

Celcom will also nominate the chief financial officer, while PGC will appoint the chief executive officer.

PGC has been eyeing to expand its MVNO service to other countries where the population of Filipinos is high. Its goal is to serve at least half of the 8.6 million Filipino living overseas.

The MVNO in Malaysia is PGC’s third MVNO deal sealed, after Hong Kong and Singapore.

Smart Pinoy is the MVNO service set up by PGC in Hong Kong through a partnership with mobile operator CSL, and in Singapore in cooperation with Mobile One. About 100,000 are subscribing to the MVNO services in both countries.

PGC is also looking at sealing MVNO deals with Taiwan, Macau, Guam, Saudi Arabia and the United States.

(Lenie Lectura)