Philippines’ second largest carrier Globe Telecom is looking to acquire a majority stake in struggling fixed-line operator Bayan Telecom via a debt-to-equity swap.
In a notice to the Philippines Stock Exchange, Albert de Larrazabal, Globe CFO, also…
Philippines’ second largest carrier Globe Telecom is looking to acquire a majority stake in struggling fixed-line operator Bayan Telecom via a debt-to-equity swap.
In a notice to the Philippines Stock Exchange, Albert de Larrazabal, Globe CFO, also said the company was in talks with Bayan’s shareholders to acquire the telco outright, as suggested by earlier local reports.
He added both the debt-to-equity swap and the buyout would require approvals from the Bayantel rehabilitation court and relevant regulators. Globe added that no definitive agreement has been signed and that no applications with the court or regulators have been formally filed.
At the end of last year, Globe announced the completion of its tender offer to purchase most of the 13.5% senior notes issued by Bayan for US$130m.
During a press conference yesterday (16 April), Larrazabal reportedly told journalists that Globe is currently finalising the rehabilitation plan for the change of ownership of Bayan, currently controlled by local conglomerate Lopez Group.
At the end of March, Globe secured a US$120m loan from Metropolitan Bank and Trust to fund its capex. It previously said it was looking to raise up to US$350m this year.