MANILA, Philippines - Publicly-listed Globe Telecom Inc., a joint venture between diversified conglomerate Ayala Corp. and Singapore Telecommunications, is a step closer to acquiring a significant share in the Lopez-controlled Bayan Telecommunications Inc.
Globe assistant corporate secretary Marisalve Ciocson-Co said in a disclosure to the Philippine Stock Exchange (PSE) that the company has completed its tender offer to all outstanding holders of 13.5- percent senior notes of BayanTel originally due last December 2006.
Ciocson-Co said about 92.90 percent of the notes of BayanTel was tendered and not withdrawn.
The settlement of the tender is scheduled on Dec. 21.
The telco provider launched last Nov. 6 a tender offer for the outstanding notes and bonds of BayanTel and Radio Communications of the Philippines Inc. (RCPI).
Globe announced anew that it has extended the early tender date of the tender offer to purchase for cash any and all of the 13.5- percent senior notes originally due 2006 issued by BayanTel to Dec. 18 instead of the first extension of Nov. 27.
Accordingly, all holders who validly tender their notes on or prior to the extended early tender date and whose notes are accepted for purchase would receive the total consideration equivalent to an amount in cash equal to the total consideration for the applicable acceptance level minus $2.50 for each $1,000 remaining principal amount of notes
Last Nov. 6, Globe announced it 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 the cash-strapped company.
Once the offer is completed, Globe’s chief financial officer Albert de Larrazabal earlier said that the company would become the major creditor of BayanTel and will perform the roles of BayanTel’s creditors in respect to the rehabilitation plan.
“Potentially combining Globe’s assets and capabilities with (BayanTel) through collaborative business efforts will enable both companies to become more competitive and will help accelerate the completion of Bayantel’s rehabilitation,” Larrazabal said.
Globe said it has been in talks with debt-ridden BayanTel “that will enable both companies to become more competitive in the current business environment.”
Globe and BayanTel already share radio frequencies to ease congestion problems, particularly that being experienced by cellular subscribers of Globe. The set up was approved by the National Telecommunications Commission (NTC).