Cirtek US unit extends supply deal with telcos

Published By VG CABUAG BusinessMirror

Quintel USA Inc., a unit of Laguna-based Cirtek Holdings Philippines Corp., on Monday said it has extended its master supply agreement with two major leading carriers in North America.

The extension of the agreement allows Quintel another 5 years of secured business with these two telcos, the firm said.

“Quintel is poised to grow its business in the near to medium term as evidenced by the relevance of its pioneering products that has been well received by our customers. Our products allow carriers to stay ahead of their game and maximize 5G services in the quickest and most cost economical manner. We are preparing our supply chain, planning, capacity expansion and capital expenditures to fully support the demand as we look to grow our market share to double digit figures in the next three to five years,” group vice chairman Jorge Aguilar said.

“Quintel’s 5G products are precisely designed with the customer’s network architecture in mind allowing synergies in terms of backwards compatibility to existing infrastructure while providing 5G capability at a fraction of the cost against competitor products.”

The global 5G base station market is anticipated to grow by a compounded annual growth rate of around 32 percent from 2020 to 2028 and is estimated to cross market valuation of $177 billion by 2028, according to a market study published in March.

Cirtek is targeting to raise some P1.37 billion from its stock rights offering (SRO) with bonus detachable warrants. The company has set a final offer price at P5.50 for both per entitlement right of its SRO and final exercise price for the bonus detachable warrants.

The company intends to list some 249.44 million in common shares for the rights shares and 249.44 million in detachable warrants with 249.44 million in underlying common shares.

“Net proceeds will be used to primarily finance the working capital of Quintel USA Inc., Cirtek Electronics Corp. and Cirtek Advanced Technologies and Solutions Inc., as well as to refinance the existing debt/payout short-term obligations of Cirtek Electronics Corp.”