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Globe steps in to buy Bayan’s debt, plans to buy company

6 Nov 2012

Filipino operator Globe Telecom has reportedly offered to acquire fellow telco Bayan Telecommunications Inc (BayanTel’s) debt from its creditors, ahead of a move to buy out the company. In a stock market filing Globe confirmed that it launched the tender offer on Monday to buy 100% of Bayan’s debt – including the liabilities of its Radio Communications Inc subsidiary. The offer expires on 18 December, although Globe has the option to extend the deadline, and is conditional on it receiving the acceptance of 70% of holders of Bayan’s USD200 million of senior notes – originally due in 2006.

Separately, Globe Telecom says it has begun talks with Bayan’s owners the Lopez Group, concerning a plan to acquire a stake in the company and secure what it terms ‘a wide range of commercial arrangements’ with it. Although no definitive agreement has been struck, Globe’s Marisalve Ciocson-Co is on record as saying: ‘The parties remain in discussions on the terms of the commercial arrangements including the price and other conditions under which the acquisition may be effected’. BayanTel has been under court rehabilitation since July 2004 and as such, any firm looking to buy into the company must first secure creditor approval. Bayan hopes to have paid off its USD325 million debt completely by 2023.

Philippines, Bayan Telecommunications (Bayantel), Globe Telecom (incl. Innove)

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