Telstra announced that its talks with San Miguel Corporation have been unable to reach commercial arrangements on a possible equity investment in a wireless joint venture in the Philippines. San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company as well as the Philippines' largest corporation in terms of revenue, with over 17,000 employees.
Telstra last year confirmed it had been negotiating a possible joint venture with San Miguel Corporation and envisaged investing up to USD$1 billion should the joint venture proceed.
However, Telstra said that it has offered to continue technical network design and construction consultancy support to San Miguel Corporation, should those services be required.
Andrew Penn, Chief Executive Officer, Telstra
While this opportunity is strategically attractive, and we have great respect for San Miguel Corporation and its President Mr Ang, it was obviously crucial that the commercial arrangements achieved the right risk-reward balance for all involved.