The National Telecommunications Commission (NTC) has approved the transfer of ownership of Bell Telecommunications Philippines Inc. (Belltel) to Two Cassandra-CCI Conglomerates Inc. – paving the way for a P3.6-billion cash infusion.

In its order dated February 3, 2010, the NTC said allowing Two Cassandra to own 100 percent of Belltel will allow the infusion of “needed capital to expand its (Belltel’s) existing infrastructure and build new infrastructures to be able to contend in the highly competitive telecommunications market.”

Among documents submitted to the NTC to show their financial capability were banks’ certifications that Belltel has an existing deposit amounting to P315.4 million while Two Cassandra has a deposit of P3.6 billion.

This translates to a cash hoard of P3.92 billion which can be used to wipe out Belltel’s P650-million deficit and finance the expansion of its operations and services.

The NTC noted that the transfer of ownership to Two Cassandra “will benefit the subscribers and customers of Belltel and the public in general as the transaction aims to facilitate the infusion of additional capital for the expansion of operations and increased efficiency in rendering services.”

The Commission said its approval hinges on the condition the Belltel, under its new owners, will continue to provide quality service to its subscribers and comply with the terms and conditions in its franchise.

Belltel is a grantee of a franchise to install, operate and maintain local exchange networks and wireless local loop (WLL) in several areas including special economic zones, inter-exchange networks, nationwide VSAT network, international gateway facilities, and cellular mobile telecommunications network.

Last December 18, Two Cassandra entered into an agreement to acquire the outstanding shares of stock of Belltel. Initially, it bought 40 percent of Belltel but had agreed to buy the remaining 60 percent after the NTC approves the change in ownership.

Disclosures with the Philippine Stock Exchange showed that Two Cassandra bought out two publicly listed firms – South China Resources, Inc. and Liberty Flour Mills, Inc. – in Belltel for P1.23 billion and P227 million, respectively, last December.

Two Cassandra once owned a minimal stake in Liberty Telecoms Holdings Inc., which was bought by San Miguel Corporation, together with partner Qatar Telecoms Inc., last year.