THE Securities and Exchange Commission (SEC) has approved the incorporation of Globe Capital Venture Holdings Inc., the holding firm of Globe Telecom Inc., on June 30, 2015.
“Globe Telecom Inc. discloses the approval to create a wholly-owned holding company through which new and strategic businesses are intended to be made and consolidated,” the telecommunications arm of conglomerate Ayala Corp. said in a disclosure to the Philippine Stock Exchange (PSE).
“The creation of this holding company aims to provide more focus on developing and growing said businesses,” Globe Telecom said.
In June, Globe Telecom said it will create a new holding company for its business investments.
Sought for comment, Yolly Crisanto, Globe head of corporate communications, said in a text message, “The board approved our request to create a holding company which will allow us to venture into strategic non-core businesses but still leveraging on our strengths as a telco. We disclosed the board approval in compliance with regulatory requirements. So far, we cannot provide details of what this new company will go into because of regulatory policies.”
Based on its disclosure to the stock exchange, Globe had 132.7 million outstanding common shares of stock as of end-March this year and its total debt stood at P64.5 billion.
In March, Globe signed a seven-year, P7-billion term loan with the Philippine National Bank, the proceeds of which will be used to finance its capital expenditures (capex) and general corporate requirements for 2015.
The company said that capex for 2015 would be approximately $650 million, of which 75 percent would be for data-related projects because of growing demand for data and internet connectivity.
These include investments for its Tattoo LTE mobile and Tattoo Home Broadband, particularly broadband DSL augmentation, mobile and wireless broadband capacities, and coverage rollout for 3G, HSPA+ and DSL network, as well as capacity upgrades for transmission, international cable facilities and its core network.
Globe has said that the balance of the capex would be spent for investments in new platforms and business support systems in line with product innovations, store deployment and other corporate requirements.
Globe’s 2014 consolidated service revenues reached a new high of P99 billion, higher than the previous record of P90.5 billion in 2013.
The company’s core net profit also reached a record level of P14.5 billion in 2014, 25 percent higher than the previous year, driven by the solid performance of its business segments amid sustained demand for data connectivity across the mobile, broadband and fixed-line data businesses.