Globe Telecom to hike public ownership to 30%

Ayala-owned Globe Telecom will increase its public ownership base to about 30 percent with the issuance of approximately P1.02 billion worth of new common shares.

The company said its board of directors had approved last May 5 the float of up to 20.4 million new shares to be offered to the public after the proposed 1:50 reverse stock split takes effect.

The reverse stock split will change the par value of Globe's common shares from P1 per share to P50 each. The new stock valuation will pave the way for the company's planned increased in capitalization from P5 billion to P11.25 billion in line with the merger of Isla Communications Co. Inc. (Islacom).

At present, Globe is controlled by two groups -- Ayala Corp. with a 44.21 percent interest and Singapore Telecom International Pte. Ltd., 39.07 percent -- for a combined majority stake of 83.23 percent.

Globe said the public offering will take the form of either common shares, Philippine Depository Receipts, American Depository Receipts, or other types of securities, depending on the specific timing and terms of the offering and on various factors such as market conditions, the company's financing needs and certain regulatory and shareholder approvals.

Globe's board, however, said the pre-emptive rights of shareholders in the issuance of the new shares will not be applied following an amendment in the company's articles of incorporation. This matter will be presented to the stockholders for their considerartion and approval during a special meeting set on June 16.

In the first quarter of the year, Globe continued the momentum gained during its take-off in 1999 with net earnings jumping 52 percent to P335 million on the back of a 71-percent surge in net revenues to P3.4 billion.

In terms of market capitalization, Globe reached a milestone by breaching the $1 billion mark at the end of the first quarter, making it the 13th biggest stock listed at the Philippine Stock Exchange.