GLOBE Telecom, Inc. announced on Monday that its board of directors recently approved a stock rights offer for its eligible common shareholders.
“The company expects to raise up to P32 billion, which will be used for the expansion of [its] mobile and broadband network as well as debt repayment,” Globe said in an e-mailed statement.
“The proposed stock rights offer will also enable the company to further expand its digital ecosystem and further differentiate itself in the market, as it capitalizes on opportunities in and beyond telco,” it added.
According to the company, determination of the final terms and conditions of the rights offer, including but not limited to the final issue size, entitlement ratio, offer price, record date, and all other terms, will be determined prior to the rights offer.
Globe has mandated BPI Capital Corp. as sole global coordinator, domestic lead underwriter and joint bookrunner and UBS AG Singapore Branch as sole international underwriter and joint bookrunner, with PNB Capital and Investment Corp. as domestic co-lead underwriter for the rights offer.
The company also said that Singapore Telecom International Pte. Ltd. and Ayala Corp., its principal shareholders, have both indicated their support for the rights offer.
“The company expects to launch the rights offer after receiving the required approvals, under suitable equity market conditions.”
At the same time, the telco said that the rights offer would put it in a position to quickly realize opportunities in the telecommunications sector and complementary services.
“Globe has made investments in several digital industries in an endeavor to address challenges faced by Filipinos as they navigate their digitalization journey. Supported by the demand for internet connection through mobile and broadband, Globe’s presence in the sectors of financial technology, virtual healthcare, digital marketing solutions, venture capital funding for startups and entertainment is expected to significantly impact the digital lives of Filipinos over the long term,” Globe noted.
The company saw its net income for the first quarter increase by 86% to P13.7 billion year on year, mainly due to an improved topline and the partial sale of its data center business.
Globe Telecom shares closed 5.77% lower at P2,092 on Monday. — Arjay L. Balinbin