Globe to acquire stake in Bayan Telecommunications?
The Philippine’s Globe Telecom is reportedly set to acquire an equity stake in struggling Bayan Telecommunications in a bid to gain ground on rival Philippine Long Distance Telephone Co. (PLDT).
Inquirer Business reports that Globe has obtained internal approval for the acquisition of all Bayan’s financial obligations and in separate discussions has reached deals with Bayan’s controlling shareholders, ABS-CBN’s Lopez family, for the procurement of an equity stake in the company.
The acquisition will involve a tender offer for a cash purchase of any and all of the 13.5% senior notes originally issued by Bayan in 2006.
Bayan is under corporate rehabilitation with a deal only able to go ahead if creditors holding 70% of Bayan’s debt agree to sell their holdings to Globe.
Should it succeed, Globe will become a major creditor of Bayan and will aid the company’s rehabilitation.
“Potentially combining Globe’s assets and capabilities with [Bayan] through collaborative business efforts will enable both companies to become more competitive and help accelerate the completion of Bayan’s rehabilitation,” said Globe in a statement.
The acquisition would build upon an already established relationship between the two companies, which recently agreed to share spectrum to increase their market reach.