GLOBE Telecom Inc. on Monday confirmed it met with creditors of debt-ridden Bayan Telecommunications Inc. to discuss how both can effectively compete in the lucrative but competitive telco sector.
“We wish to confirm that Globe has met with some creditors of Bayan in relation to our ongoing exploratory discussions with Bayan that will enable both companies to become more competitive in the current business environment,” said Globe chief financial officer Albert de Larrazabal in a disclosure to the stock exchange on Monday.
The cellular firm also said it will inform the exchange as soon as discussions with Bayan’s creditors reach a definite stage.
The BusinessMirror reported on Monday that top officials of Globe recently met creditors of the beleaguered Lopez-owned company last month to explore if the cellular firm can successfully acquire Bayan.
Bayan is 89-percent controlled by Lopez Holdings Corp. and is currently under rehabilitation proceedings.
Globe is also in discussions with another Lopez unit, ABS-CBN Broadcasting Corp., for a possible content partnership.
De Larrazabal also said Globe and the Lopez group continue to explore business opportunities. “As part of any company’s day-to-day business operation, Globe continues to discuss other potential forms of business collaboration with different parties, including the Lopez Group.”
Globe president Ernest Cu said, “We’ve [Globe and the Lopez Group have] always been talking. I cannot deny that [ABS-CBN chairman and CEO] Gabby [Eugenio Lopez III] and I regularly talk. We always talk on what do we partner with, the capabilities, what’s going on. It includes all forms of discussion such as discussions about SkyCable, about ABS-CBN, about Bayan on how do we synergize them,” said Cu in an earlier interview.
Even Lopez Holdings Corp. president Salvador Tirona, in a separate interview, said there are discussions with Globe. “We have always been open to discussions for partnerships and/or other ventures involving Bayan. There are currently discussions on long-term cooperation agreements, such as co-use, between Globe and Bayan,” he said.
The company has been put on the auction block many times. Several years ago, Globe explored the possibility of acquiring Bayan but had to drop this plan because the latter had to secure approval from creditors. Seeking creditors’ approval complicated matters resulting in stalled negotiations.