Globe Prepares Rights Offering to Fund Network and Reduce Debt
Philippines-based Globe Telecom announced plans to raise PHP 32 billion ($591.9 million) for ongoing network expansion and debt repayment, with board approving rights offering purchase plan supported by its two main shareholders Ayala and Singtel.
Globe Telecom Chief Financial Officer Rizza Maniego-Eala noted in a statement that this is the operator’s first capital market rights offering in more than two decades and shows the confidence of its principals. shareholders in the company and its plans for the future.
Maniego-Eala added that the capital increase “will strengthen our balance sheet and allow us to further develop adjacent businesses that will enable the Filipino digital lifestyle.”
The common shares will be issued as part of an increase in the authorized share capital of the company.
The capital increase, the rights offering and the listing of the shares on the Philippine Stock Exchange are each subject to customary regulatory approvals.
Globe Telecom has allocated PHP 89 billion for capital expenditure in 2022, having allocated PHP 250 million over the past four years.
Data from GSMA Intelligence showed Globe Telecom ended March with 87.6 million mobile connections, ahead of rival Smart Communications with 70.3 million.
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