Globe eyeing Bayan takeover within the year

Discussion in 'BayanDSL / SkyDSL' started by Renel Isio, Feb 11, 2013.


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  1. 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.
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    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.



     



  2. Globe eyes complete takeover of BayanTel

    By Lawrence Agcaoili (The Philippine Star) | Updated April 17, 2013 - 12:00am
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    MANILA, Philippines - Ayala-led Globe Telecom Inc. is looking at completing the take-over of cash-strapped Bayan Telecommunications Inc. of the Lopez Group within the year paving the way for an early exit from the ongoing rehabilitation program.
    Alberto de Larrazabal, chief financial officer of Globe, said in an interview with reporters that the telecom provider is set to complete the conversion of the debt it acquired from the debt holders of BayanTel into equity and at the same time finish the negotiations with the Lopez Group within the year.
    De Larrazabal said the company is currently talking with the Lopez Group that control close to 97 percent of BayanTel for the complete takeover of the ailing telecom provider.
    “The intent or desire is to end up with a majority stake. The intent is to eventually end up with controlling interest,” he added.
    The company, according to him, is still finalizing the conversion of the debt of Bayantel and Radio Communications of the Philippines Inc. (RCPI) it acquired with a face value of over $400 million but was only acquired at a discounted price of $130 million.
    Globe acquired 96.5 percent of the total bondholders of BayanTel.
    Business ( Article MRec ), pagematch: 1, sectionmatch: 1​
    The Globe executive pointed out that the company plans to ask the rehabilitation court for an amendment of the rehab plan to ensure continued service to BayanTel’s fixed line and broadband customers.
    De Larrazabal said the company hopes to file an amended rehabilitation plan before the rehabilitation court within the next few weeks to ensure the long-term viability of BayanTel.
    He added that the company is looking at an immediate exit from the rehabilitation plan as the original deadline of the rehabilitation set by the Lopez Group is 2023.
    BayanTel has reportedly settled a total of P8.19 billion in total debt since it filed for corporate rehabilitation in 2004. In the first nine months of last year, the company paid P908.3 million worth of debt.
    The debt-ridden telco provider had been subject to court-supervised rehabilitation proceedings since 2003 and intends to pay its $325 million outstanding debt within 2023.
    “We have said that we intend to put BayanTel in a more solid footing and that would entail conversion of debt into equity so that the level of debt that is outstanding is something that is commensurate to capacity to pay,” he said.
    The official said the acquisition would entail the approval from the rehabilitation court as well as the state-run National Telecommunications Commission (NTC) since it would involve the change in ownership.

    http://www.philstar.com/business/2013/04/17/931429/globe-eyes-complete-takeover-bayantel
     
                                 

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