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06 July 2015
Globe Telecom has received approval for the long-awaited takeover of Bayan Telecommunications.
The National Telecommunications Commission (NTC) approved
the operators' joint application for the conversion of
Bayantel’s $423.3 million debt into shares, in
which Globe would take at least a 54% stake in the company.
The approval comes nearly two years after
Globe and Bayantel filed their application in October
2013. Globe had acquired a 38% interest in Bayantel in 2013
after it converted the operator’s debt into common
shares. It had planned to further convert a portion of the
$423.3 million debt to raise its stake to as much as
"The debt-to-equity conversion transaction between Globe and
Bayan will precisely enable the latter’s continued
viability as a service provider, allowing it to exit
rehabilitation and enhance its current service offering to the
public," said Froilan M. Castelo, Globe’s general
"Globe will certainly add value to Bayantel, bringing
financial and technical support and synergies, as well as
experience and our own culture of innovation," he said.
The planned takeover has met with opposition from Philippine
Long Distance Telephone (PLDT), saying a merger would hinder
The regulator said that safeguards have been adopted to
ensure a level playing field, such as conditions attached to
the approval of the frequency sharing arrangement between Globe
and Bayantel. Last November, the Philippines’
Court of Appeals approved the joint use of 1.8GHz spectrum by
Globe and Bayantel.
"The Commission finds that the acquisition by Globe of
controlling interest in Bayantel pursuant to the court-approved
amended rehabilitation plan and master restructuring agreement
neither poses any prejudice to the public interest and
convenience nor will make the service fail to operate or
function better," said the NTC.