Philippine operator Globe Telecom’s takeover of local fixed-line telco Bayan is set for more delay after being hit with a temporary restraining order from the country’s Court of Appeals.
Globe has been seeking regulatory permission to convert more…
Philippine operator Globe Telecom’s takeover of local fixed-line telco Bayan is set for more delay after being hit with a temporary restraining order from the country’s Court of Appeals.
Globe has been seeking regulatory permission to convert more of Bayan’s debt into equity for about a year, after initially getting court approval in September 2013 to transform some of it into a 38.3% stake.
It is looking to amass a total stake of 56.6% from converting another chunk of the Bayan debt it owns.
However, the company said today that the country’s National Telecommunications Commission has been blocked from acting on the deal by the restraining order, which came after a petition from incumbent telco PLDT.
“We are eager to see through the completion of Bayan’s rehabilitation,” said Froilan Castelo, Globe’s general counsel.
“The telecommunications industry should not be held hostage by a single dominant player.”
Ariel Tubayan, Bayan’s head of legal and regulatory affairs, said the deal is key to its “corporate rehabilitation”, adding that the delay hampers the ability of both companies to ensure the viability of the indebted telco’s operations, which serves 350,000 customers.