Inquirer Business reports that Globe has obtained internal approval for the acquisition of all Bayan’s financial obligations and in separate discussions has reached deals with Bayan’s controlling shareholders, ABS-CBN’s Lopez family, for the procurement of an equity stake in the company.
The acquisition will involve a tender offer for a cash purchase of any and all of the 13.5% senior notes originally issued by Bayan in 2006.
Bayan is under corporate rehabilitation with a deal only able to go ahead if creditors holding 70% of Bayan’s debt agree to sell their holdings to Globe.
Should it succeed, Globe will become a major creditor of Bayan and will aid the company’s rehabilitation.
“Potentially combining Globe’s assets and capabilities with [Bayan] through collaborative business efforts will enable both companies to become more competitive and help accelerate the completion of Bayan’s rehabilitation,” said Globe in a statement.
The acquisition would build upon an already established relationship between the two companies, which recently agreed to share spectrum to increase their market reach.
