Philippines : GLOBE TELECOM'S tender offer to BTI [TendersInfo (India)]
(TendersInfo (India) Via Acquire Media NewsEdge) Globe chief financial officer Albert de Larrazabal said that Globe Telecom s tender offer to buy around 70% of Bayan Telecommunications Inc. s (BTI) outstanding debt will reinforce BTI s operations and will be advantageous to its customers eventually.
The tender offer is representative of Globe s belief in the value of BTI as a nationally enfranchised entity, said de Larrazabal. BTI s debt load affected its performance.
Potentially combining Globe s assets and capabilities with BTI through collaborative business efforts will enable both companies to become more competitive and help accelerate the completion of BTI s rehabilitation, he said.
Recently, Globe launched a tender offer to purchase for cash any and all of the 13.5% Senior Notes originally due 2006 issued by BTI. If the tender offer succeeds, Globe will be the leading creditor of BTI. It will perform a role similar to present roles of BTI s creditors on its rehabilitation plan, along with representation in the monitoring committee.
Recently, the National Telecommunications Commission (NTC) gave approval to Globe s application for the joint use by Globe and BTI of the frequencies 1750-1760MHz/1845-1855MHz assigned to Bayantel.
The joint use agreement will enable Globe to meet growing demand for voice, SMS and mobile data services. It will let BTI to provide its mobile telecommunications services to customers.
Our long term collaboration with BTI is a strategic initiative that will enable BTI to unlock and maximize the potential of its key business assets and capabilities, said de Larrazabal.
I believe this is consistent with the objectives of the NTC, and is in the best interests of BTI s stakeholders and customers, he added.
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