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Globe board approves stock rights offer to expand network

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BY GILBERT P. BAYORAN

The Board of Directors of Globe yesterday approved a Stock Rights Offer for Globe’s eligible common shareholders.

In a statement, Globe said it expects to raise up to ₱32 Billion which will be used for the expansion of the mobile and broadband network as well as debt repayment.

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.

The common shares for this offer will be issued out of the increase in the Company’s authorized capital stock which was approved by its Board of Directors and Shareholders on 25 April 2022, and 26 April 2022, respectively, the company said.

Globe Chief Finance Officer Rizza Maniego-Eala said: “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.”

“We believe there is excitement in the market for Globe’s future prospects and potential amid the massive demand for data-related services as more Filipinos are now embracing the benefits of digitalization,” Eala said

She also said that increase in capital stock, the Stock Rights Offer and the listing of the Shares on the Philippine Stock Exchange are each subject to the relevant regulatory approvals.

Globe expects to launch the Stock Rights Offer after receiving the required approvals under favorable market conditions. Singapore Telecom International Pte. Ltd, a wholly owned subsidiary of Singtel, and Ayala Corporation, Globe’s principal shareholders, have both indicated their support for the Stock Rights Offer, Eala added.

With connectivity becoming an essential part of customers lives, Globe said its products and services are now more important than ever.

Globe has seen data traffic in its network grow significantly, with the first quarter of 2022 reporting a 27 percent increase against the same period last year, it added.

This growth was buoyed by the increased smartphone penetration in the network, which grew from 81 percent in 2020 to 85 percent in 2021, and led to an increase in per person data usage of 22 percent, Globe said.

Despite this increase, Filipino data usage still lags behind neighboring countries and there is still latent demand in the market today.

To support this fast-growing demand, Globe has been continuously investing in its network, spending close to ₱250 Billion in capital over the last four years and committing to spend another ₱89 Billion in 2022.

These investments have allowed Globe to become a leader in the industry and a preferred brand by the Filipinos.

Capitalizing on this data trend, Globe said it has likewise invested in businesses adjacent to the telco sector, like its fintech platform, GCash, which reached 60 million registered users in March 2022 and remains the undisputed fintech leader in the country today.*

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