Globe Telecom to extend tender offer for Bayan

22 Nov 2012

The Philippine Daily Inquirer writes that local telco Globe Telecom is extending its tender offer period to purchase Bayan Telecommunications’ (Bayan’s) debt obligations from its creditors, as it looks to complete a structural merger with the smaller operator. In a statement, Globe confirmed that while its initial tender offer was due to expire on 19 November, it had decided to extend the period to 27 November – with the option to extend again, or terminate the offer, depending on its position. ‘All holders who validly tender their notes on or prior to the extended early tender date, and whose notes are accepted for the purchase, will receive the total consideration,’ the statement read. If the tender offer is successful, Globe will become Bayan’s main creditor, at which point it will assume a similar role to that being performed by the smaller firm’s creditors under its long term rehabilitation plan – including representation in the monitoring committee. Preliminary figures suggest that at least 82% of the aggregate remaining principal amount of loans in Globe’s tender offer ‘appears to have been tendered’.

Philippines, Globe Telecom (incl. Innove)