EasyCall board approves hike in capital to P200 million

MANILA, Philippines - The board of directors of publicly listed EasyCall Communications Philippines has approved an increase in the company’s subscribed and paid-up capital, proceeds of which will be used for the expansion and and enhancement of its broadband wireless network and other data communications services.

The increase in subscribed and paid-up capital from P103.43 million to P200 million will be effected by way of private placement of Global E-Business Solutions Inc. (GEBSI) of P46.57 million equivalent to 46.57 million shares at a par value of P1 per share to be paid by GEBSI before April 23, 2010.

EasyCall also revealed that the remaining P50 million will be raised either by way of private placement of the company’s existing shareholders and/or a new investor, or by way of a stock rights offer of up to 50 million shares whereby each shareholder shall be given the right to acquire one share for P1 for every three shares currently held.

The increase in capitalization is in line with a condition set by the National Telecommunications Commission (NTC) for the company to increase its paid-up capital, but not by way of loan.

In 2001, the Transnational Diversified Group, through its subsidiary GEBSI, infused new capital of P52 million for which it secured a 33 percent interest.

ECPI is envisioned to fasttrack TDG’s presence in information technology-related outsourcing services, leveraging on the former’s contact center and Internet Data Center infrastructure and operating resources. On the other hand, officials said ECPI will benefit from TDG’s vast business network, financial resources and expertise to grow the new ECPI businesses.

ECPI earlier reported a net income of P1.42 million in the third quarter of last year primarily due to a decline in general and administrative expenses aside from additional revenues earned for IP-based telephone system rentals.

Another contributor is ePerformax International’s net income for the third quarter where EasyCall owns a 3.8-percent equity.

During the third quarter, EasyCall E-Services Inc., a wholly owned subsidiary, recorded P3.79 million in service revenues, 23-percent higher than last year’s P3.08 million.

EasyCall was originally organized as a telecommunications firm in 1989, pioneering the use of pagers in the country.

The company first ventured into the business process outsourcing sector in 1999 when it acquired the call center business of Siemens in the Philippines. EasyCall’s pager business was terminated in December 2002.

The NTC earlier approved the application of ECPI for the issuance of a certificate of public convenience and necessity (CPCN) and provisional authority to install, operate and maintain a nationwide data communications network and to provide data communications services.

The approval of the NTC was granted subject to the condition that within eight months from the issuance of the provisional authority, Easycall shall infuse an additional P10 million in paid-up capital and not through a loan, in order to make the communication network viable.

EasyCall is targeting schools and hospitals to drive up revenues for its plan to put up a nationwide data communications network.