Globe Telecom Inc. said on Monday it borrowed P20 billon from Metropolitan Bank and Trust Co. to partly finance the acquisition of the telecommunications assets of San Miguel Corp.
Globe, a unit of Ayala Corp., said it signed a 12-year and 15-year P20-billion term loan facility arranged by First Metro Investment Corp. with Metrobank as lender.
“The loan shall be used to finance the acquisition of 50 percent equity interest in Vega Telecom Inc., Bow Arken Holdings Company Inc. and Brightshare Holdigns Corp.,” Globe said.
The other half of the equity of VTI, BAHC and BHC is to be acquired by PLDT Inc.
The total enterprise valuation of the three companies was estimated at P70 billion, including total liabilities of P17.2 billion.
The equity value amounts to P52.8 billion, which translated into an agreed consideration of P26.4 billon for Globe’s 50 percent equity stakes in the companies.
PLDT and Globe on May 30 made an initial payment of P26.4 billion or 50 percent of the total valuation of the three companies. The two will pay the 50 percent balance in two tranches, or six and 12 months after closing, respectively,
Globe said the investments would enable the company to support the data needs of existing and new customers.
The company earlier said it might increase capital expenditures by $10 million this year to finance the rollout of more cell sites using the 700 megahertz, 1800 Mhz and 2600 Mhz frequencies it acquired from San Miguel.
Globe has earmarked a capital expenditure of $750 million this year.
Under a three-year program submitted to the National Telecommunications Commission, Globe committed to provide mobile services, including voice, texts and data to 95 percent of municipalities and cities in the country by the end of 2018, using the additional spectrum it acquired from San Miguel.
Globe expects that about 2,200 of the company’s existing cell sites representing over 30 percent of its network nationwide will be upgraded by the end of 2016, using the additional spectrum from the co-use agreement.
Globe earlier reported a net income of P8.97 billion in the January-to-June period from P8.71 billion year-on-year.
Globe’s core net income, which excludes the impact of non- recurring charges, foreign exchange gains and mark-to-market charges, stood at P8.8 billion, up 2 percent on year.
The company posted a total consolidated service revenue of P59.6 billion, 11 percent higher than P53.8 billion in the same period last year.