PH telco Globe to infuse $300m into new subsidiary Bayantel after it ends corp rehab

Bayantel.

Philippine mobile operator Globe Telecom Inc is injecting $300 million in fresh capital into its recently-owned subsidiary Bayan Telecommunications Inc (Bayantel) as the latter ended its corporate rehabilitation.

Globe’s chief operating officer Gil Genio made the disclosure on Thursday following the release of the court order. He is now also the newly-appointed chairman of Bayantel.

Genio told reporters that Globe might spend $200 million to $300 million for Bayantel’s network modernisation alone.

Also read: Philippine-listed Globe increases stake in Bayantel to 98.5

The former debt-stricken telco firm underwent a court-assisted corporate rehabilitation in 2003 and in 2013, the Pasig City Regional Trial Court Branch 158 confirmed the Amendment of Bayantel’s Rehabilitation Plan wherein Globe, as Bayantel’s principal creditor, was authorised to convert its debt holdings into a controlling interest of at least 54 per cent in Bayantel’s outstanding shares.

Globe has so far spent $172 million in Bayantel as it invested almost $40 million when it increased its stake to 98.57 per cent, followed by the debt-to-equity conversions.

The Ayala-led telco firm last July purchased all the equity in the capital stock held by Bayantel and Lopez Holdings Corp (LHC)..

Also read: Globe Telecom’s new holding firm Global Capital Venture incorporated in PH

Bayantel’s planned rehab exit was supposed to be in 2023, but Globe’s entry in 2013 cut short the process.

Globe aims to boost both companies’ respective network improvement programmes targeted at providing world class telecommunication services, as it will provide technical and financial support but at the same time maximizing Bayantel’s frequencies.

Globe’s last trading price decreased 0.43 per cent or P10.00 to close at P2,310.

Also read:

Globe Telecom calls for all-inclusive IP peering of major Internet providers in PH

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Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.