Bayantel out of rehab, Globe infuses up to $300M
MANILA, Philippines – Bayan Telecommunications Incorporated (Bayantel) is officially out of corporate rehabilitation program, with its major stockholder Globe Telecom Incorporated out to infuse fresh capital between $200 million and $300 million to modernize the network.
"The court order came out already. Tapos na (It’s done). Bayantel is officially out of rehab," Bayantel’s newly-appointed Chairman Gil Genio told reporters on the sidelines of an event in Mandaluyong City on Thursday, October 29.
It was in 2003 when Bayantel was put under a court-assisted corporate rehabiliation. And it was in August 2013 when a regional trial court approved Globe’s plan to convert its debt holdings into equity. (READ: Globe to PLDT: No need to auction Bayantel frequencies)
Bayantel’s outstanding debt stood at $497 million when it was placed under corporate rehabilitation. According to Genio, Bayantel is "now officially out of rehab", which is way ahead of the original 2023 target.
Globe disclosed in July that it is hiking its stake in Bayantel by buying out Bayan Telecommunications Holdings Corporation and Lopez Holdings Corporation. The debt-to-equity conversion scheme, involving up to 70.76 million shares, hiked the Ayala-led telco’s control to 98.57% from 56.87%.
The Ayala-led telco invested P1.8 billion ($39.74 million) for the acquisition.
Globe's investment in the acquisition of Bayantel, including debt-to-equity conversions, has totaled $172 million.
Infusions up to $300M
Now that it is officially out of rehab, Genio said it is infusing fresh capital of $200 million to $300 million to modernize Bayantel’s network.
"We're probably spending...in the next couple of years, anywhere from $200 to $300 million, modernizing the Bayan network," Genio said.
"That's just for the modernization of the network. Modernizing the outdoor cabinets, data nodes, etc," he added.
For Globe, this 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."
Asked if Globe plans to buy out the remaining shareholders, Genio replied: "It requires a conversation with those shareholders. Those are a couple of individual shareholders, medyo minority yun (somehow a minority)." – Rappler.com