Globe eyeing Bayan takeover within the year Posted on 07 Feb 2013 at 12:28pm Ayala-led telco Globe Telecom is looking at converting its creditor status to that of a majority owner of smaller rival Bayan Telecommunications before the current year is out. This is according to top Globe officials during the company’s fourth quarterly briefing in Makati City on Wednesday, Feb. 6. The carrier also disclosed that it paid $130 million to acquire 96.5 percent of Bayan’s debts from its creditors. Globe chief financial officer Alberto Larrazabal said the debt acquisition will allow the company to control majority ownership of Bayan although they can’t ascertain yet the exact equivalent of shares in the Lopez-owned firm. Yoly Crisanto, Globe’s corporate communications chief, said the company will petition the court, which is overseeing Bayan’s rehabilitation plan, to “accelerate” the conversion of Globe’s debt purchase into actual equity. Crisanto also allayed fears that unlike the PLDT-Digitel megadeal, Globe’s impending acquisition of Bayan’s majority stocks will not create a virtual monopoly. As for Bayan’s employees who may be affected by the takeover, Crisanto said there are no definite details on this matter although she cited that in the PLDT-Digitel case, a number of workers were not absorbed under the deal. For its financial performance for the whole 2012, Globe said its consolidated service revenues soared to an all-time high of P82.7 billion, 6-percent above previous year’s level of P77.8 billion. Revenue expansion was supported by an overall increase in subscriber base as well as improvements across key product segments. Despite a very challenging competitive environment, declining yields resulting from value offerings, as well as continued prevalence of multi-SIM incidence, the mobile business finished the year with P67.2 billion in revenues. The broadband and fixed line data segments posted significant gains on account of the rising demand for data and Internet connectivity. Full year broadband revenues were up 16 percent to P8.7 billion as the year marked another milestone for the business with the commercial launch of its broadband LTE service. Fourth quarter revenues likewise recorded a quarterly-high of P21.4 billion which drew significant contributions from both the mobile and fixed line and broadband segments, as well as additional uplift from the seasonal holiday spending. The mobile business delivered strong results with P17.3 billion in revenues which was underscored by the successful launch of the Apple iPhone 5 in the market. Cumulative mobile subscribers by end of the year stood at 33.1 million, up 10 percent from previous year. The broadband business, similarly, continued to ride on the popularity of social networking sites and benefited as well from declining prices of access devices such as PCs, tablets, and laptops. The broadband segment generated P2.4 billion in fourth quarter revenues and was supported by about 1.7 million total broadband subscribers by year-end.