Ayala-backed Globe Telecom says it hopes to complete its planned buyout of fellow operator, cash-strapped Bayan Telecommunications Inc (Bayan), this year, Rappler reports. In a press conference yesterday, Globe chief financial officer Alberto de Larrazabal told reporters that how much his firm eventually ends up owning will be dependent on the court that is considering Bayan’s rehabilitation plan. However, it is assumed that Globe is looking for majority control of the telco, even though the current plan only allows it to take up to 40% ownership in Bayan. Despite this, de Larrazabal says: ‘It is fair to assume that [the buyout] will be completed within the year’. Globe has already purchased 96.5% of Bayan’s outstanding debt and is looking to convert this into equity ownership in the near future. If successful in its takeover plan, Globe president and CEO Ernest Cu notes that the operator will ultimately looking to merge with Bayan.
In a related development, Globe has confirmed it is in talks with financial institutions to raise USD120 million to fund its 2013 CAPEX programme. Its CFO told the room that the final tranche of its financing programme is targeted for completion within the first half of the year. ‘We have raised about USD200 million so far and we need about USD120 million equivalent more to go,’ he said. Globe’s overall 2013 capital expenditures are estimated at between USD450 million and USD500 million. Last month, TeleGeography’s CommsUpdate reported that Globe had secured a USD120 million loan with Metropolitan Bank & Trust Co, to help fund its ongoing network upgrade programme. The terms of the loan were not disclosed, but the latest funding round came on top of the USD75 million loan it inked with The Bank of Tokyo-Mitsubishi earlier this month.