Globe Telecom is in talks to acquire Lopez-controlled Bayan Telecommunications Inc., the company acknowledged.
“We wish to confirm that Globe has met with some creditors of Bayan in relation to our ongoing exploratory discussions with Bayan that will enable both companies to become more competitive in the current business environment,” Globe chief financial officer Albert de Larrazabal informed the Philippine Stock Exchange.
Bayantel was placed under rehabilitation in July 2004 with a debt of $325 million, which it hopes to have paid off completely by 2023. It has reportedly settled P8.19 billion of its debt so far.
Bayantel has entered into a co-use agreement with Globe, approved by the National Telecommunications Commission on Sept. 28, that allows the joint use of Bayantel’s assigned 1800-megahertz (MHz) frequency band (1750-1760 MHz; 1845-1855 MHz).
This allows Globe to accommodate the growing demand for its voice, text and mobile data services, and Bayantel to offer cellular phone services nationwide.
BayanTel operates a fixed-line and data business in the National Capital Region and some provinces. It also has 92-percent control of the National Digital Transmission Network (NDTN), which has $70 million worth of submarine and land cables and microwaves.
“Globe continues to discuss other potential forms of business collaboration with different parties, including the Lopez Group,” said de Larrazabal.
Globe Telecom Inc. is a joint venture between diversified conglomerate Ayala Corp. and Singapore Telecom.