Globe offers to buy Bayan’s debt

Ayala-led Globe Telecom, Inc. on Tuesday said it offered to buy the debts of Bayan Telecommunications, Inc. (Bayan), as the former also eyes an equity interest in the Lopez-led firm.

“Globe … has obtained internal approvals to commence offers to purchase on November 5, 2012, up to 100% of the financial obligations of [Bayan] … and Radio Communications of the Philippines, Inc. to their respective financial creditors,” the company said in a disclosure.

The transaction covers Bayan’s previously issued notes and other financial loans, as well as RCPI’s financial obligations.

Globe said that once the debt offers are completed, it intends to amend the terms of the rehabilitation plans for Bayan and RCPI. The said firms have been in rehabilitation since 2003 and are expected to remain in such state until 2023.

The amendments to the terms will be done “in the interest of assuring [Bayan’s] long-term sustainability,” Globe said.

Moreover, Globe said it is also in discussions with Bayan for a possible acquisition of an equity stake in the latter.

“Globe has commenced separate discussions with the controlling shareholders of [Bayan] regarding a wide range of commercial arrangements including a potential acquisition by Globe of an equity interest in [Bayan],” the Ayala telco said.

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