SUMMARY
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MANILA, Philippines – Globe Telecom, Incorporated is hiking its stake in Bayan Telecommunications, Incorporated (Bayantel) by buying out entire stakeholders, including Lopez Holdings Corporation (LHC), for P1.8 billion ($39.74 million).
The Ayala-led telecommunications company informed the Philippine Stock Exchange (PSE) on Tuesday, July 21, that it has agreed to buy the entire 41.7% stake of Lopez group in Bayantel.
This will further increase Globe’s stake in Bayantel to 98.57% from 56.87%, Globe told PSE.
“Transaction involves up to 70,763,707 Bayantel shares. LHC holds 717,335 shares in Bayantel,” the PSE disclosure read.
On July 2, the National Telecommunications Commission (NTC) finally gave Globe the green light to take over Bayantel, wherein it took 56.87% controlling stake.
After opposition from its rivals, including Philippine Long Distance Telephone Company, the NTC decided to approve the takeover as it “neither poses any prejudice to the public interest and convenience nor will make the service fail to operate or function better.”
In 2013, Globe and Bayantel jointly filed a petition with the NTC, seeking approval of its debt-to-equity transaction which both firms entered into when Globe acquired a sizable portion Bayantel’s debt to its creditors.
“This will strengthen Bayantel’s position as a viable player in the rapidly evolving telecommunications industry, making the environment more competitive in the process,” Bayantel Chief Operating Officer Rafael Aguado said.
For Globe, the takeover will allow Bayantel to “enhance its current infrastructure and network, build more cell sites and related facilities (as well as) enrich more people’s lives through the wonders of telecommunication.”
Bayantel’s outstanding debt stood at $497 million when it was placed under corporate rehabilitation.
It has reportedly settled a total of P8.19 billion ($181.69 million) since it filed for supervised rehabilitation proceedings. It also intends to pay its $325 million outstanding debt by 2023. – Rappler.com
$1=P45.28
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