Philippine telco Globe Telecom is in talks to acquire equity in smaller local carrier Bayan Telecommunications, subject to approval from the regulator.
As TelecomFinance reported earlier this month, Globe has launched a tender offer to…
Philippine telco Globe Telecom is in talks to acquire equity in smaller local carrier Bayan Telecommunications, subject to approval from the regulator.
As TelecomFinance reported earlier this month, Globe has launched a tender offer to acquire Bayantel’s US$185m debt.
In an announcement to the Philippine Stock Exchange today, the purpose of which was to clarify inaccuracies in a local media report on the debt purchase, Globe added that it was also looking to acquire a stake in the indebted Philippine operator.
“Globe has commenced separate discussions with the controlling shareholders of [Bayantel] regarding a wide range of commercial arrangements, including a potential acquisition by Globe of an equity interest in [Bayantel],” said Albert de Larrazabal, CFO of Globe, in the statement.
“The approval of the National Telecommunications Commission is required to complete the acquisition.”
The company added that, while discussions were underway, no decision had been made on the purchase price.
Bayantel has been subject to court-supervised rehabilitation proceedings since 2003, following debt restructuring talks with creditors. Globe is looking to purchase its 13.5% senior notes, which were initially due in 2006, on the condition that 70% of bondholders agree to the transaction.
Citigroup is serving as dealer manager for Globe’s tender offer, which expires on 18 December.
