Singtel-backed Globe’s stocks rights offer gets OK from board

It aims to raise ₱32b ($819m).

Philippine telco company Globe has received approval from its Board of Directors for its stock rights offer which is expected to raise ₱32b ($819m).

Money raised from the offering will be used for Globe’s expansion of its mobile and broadband network, and debt repayment.

Apart from the board, Globe’s principal shareholders—Singapore Telecom International Pte. Ltd and Ayala Corporation—have also indicated their support for the stock rights offer.

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The common shares for the offer will be issued out of the increase in Globe’s authorised capital stock.

“This marks the first time Globe will do a rights offer in the capital market in over two decades and shows the Principal Shareholders’ confidence in the Company and its plans going forward,” Globe Chief Finance Officer, Rizza Maniego-Eala, said.

“This effort will also further strengthen our Balance Sheet and empower us to further develop adjacent businesses that will enable the Filipino digital lifestyle,” she added.

Globe said it will launch the Stock Rights Offer after receiving the required approvals, under favourable market conditions.