Globe buys nearly 100% of Bayantel in latest deal

Globe Telecom Inc. will soon own nearly 100 percent of Bayan Telecommunications Inc. (Bayantel), which has been placed under a court-assisted rehabilitation since 2003.

 

The Ayala-controlled company agreed to acquire the 70,763,707 shares of Bayan Telecommunications Holdings Corp. and Lopez Holdings Corp. in Bayantel for about P1.83 billion, according to a disclosure to the Philippine Stock Exchange on Tuesday.

 

The transaction follows the conversion of Globe’s debt holdings in Bayantel into equity, on the heels of a court-approved rehabilitation plan of the insolvent telco that was approved by the National Telecommunications Commission on July 2.

 

The acquisition would allow Globe to increase its equity interest in Bayantel to 98.57 percent from 56.87 percent. – Keith Richard Mariano/VS, GMA news