Globe: No regulatory roadblocks seen in acquiring Bayan
MANILA, Philippines - Globe Telecom, Inc. on Wednesday said it sees no regulatory roadblocks should it decide to acquire Lopez-led Bayan Telecommunications, Inc.
This, as a merger of the two entities "doesn't create a monopolistic type of structure," Ernest L. Cu, president and chief executive officer at Globe Telecom, said said in a briefing.
For one, frequencies that Globe Telecom and Bayan own are still below what telco giant Philippine Long Distance Telephone Co. (PLDT) has, Cu explained.
"There will be no consultations of anything similar to what occurred in the PLDT-Digitel merger... We don't anticipate any issues that they can bring up," he continued.
Globe Telecom in December last year completed its tender offer for bulk of Bayan's debt papers.
At present, the Ayala-led telco firm is preparing to submit a revised rehabilitation plan for Bayan, which has been in recovery since 2003 and is expected to remain so until 2023 because of its debts.
"We, together with the company (Bayan) will go to the rehab court and present an amended proposal that we believe will put the company (Bayan) in a more sustainable foorting," Albert M. De Larrazabal, chief financial officer at Globe Telecom, said in the same briefing.
Cu stressed that Globe Telecom is looking at keeping Bayan's cash flows sustainable now that his company is the sole creditor of the Lopez-led firm.
Moreover, converting the debt to Bayan shares remains an option for Globe Telecom, Cu said.
"Debt to equity conversion is a possibility and acquiring more equity is also possibility," Cu said, stressing there are no definite agreements have been reached.