August 07, 2013

Globe eyes initial 57% stake in Bayantel for $90M

Globe Telecom Inc., a joint venture between conglomerate Ayala Corp. and Singapore Telecommunications Ltd., is initially  looking at acquiring a 57-percent stake in cash strapped Bayan Telecommunications Inc. (Bayantel) of the Lopez Group through a debt to equity transaction.

The 69% worth of debt acquired for about $90 M would be equivalent to a 57-percent interest in Bayantel.

The current outstanding principal amount of Bayantel’s debt stood at $423.3- M and would be reduced to $131.3  M upon a full debt-to-equity conversion with the Lopezes as part of the restructuring. - WealthSec