Globe Telecom PDR holders come up with options to redeem shares

Globe Telecom Holdings Inc. (GTHI) disclosed yesterday that a majority of the remaining holders of its Philippine deposit receipts have come up with three options in redeeming the Globe Telecom common shares underlying the PDRs.

Among the options approved by the PDR holders include selling the underlying common shares in the open market, in a transaction over the Philippine Stock Exchange and remitting the cash proceeds to the holder.

Other options approved to allow GTHI to fulfill its remaining obligations to PDR holders include the conveyance of the underlying common shares to the holder in a transaction over the PSE or in an over-the-counter transaction.

GTHI corporate secretary Ma. Caridad D. Gonzales said PDR holders shall have 30 days from Oct. 2 to notify the company of their selected option. Failure to do so within the prescribed period would result in the sale by GTHI of the underlying common shares in the open market, proceeds of which shall be forwarded to the holders.

GTHI is jointly owned by Globe Telecom, parent firm Ayala Corp. and its foreign partner Singapore Telecom International Pte. Ltd.

Globe issued the PDRs, an instrument which could later be converted into common shares, to raise about $100 million for the company’s capital build-up on its wireless phone business.

Priced then at P725 each, the PDR offering was able to generate funds from international investors, who would otherwise be legally constrained to limit their holdings to 40 percent of a local telecom company.

There are over 12 million outstanding PDRs in the market.

Globe is a leading provider of wireless communications services in the Philippines with approximately 4.6 million cellular subscribers as of end-December 2001 for a 72-percent growth from the 2.7 million count the previous year.

Of Globe’s 4.6 million cellular subscribers, 96,000 came from users to touch mobile, the new wireless prepaid brand launched by hte company last September to serve the ever-growing needs of the general public.

As it anticipates further growth in its newest revenue-generating initiative as an alternative wireless product catering to an unserved segment of the prepaid market, Globe will continue to expand in this area.

Globe also offers wireline voice communications and data transmission services and domestic and international long distance communications services.

Over the last two years, Globe has been experiencing rapid growth. To maintain its leading position in the digital wireless product, the company said it will continue to invest in products that leverage its large subscriber base to generate incremental revenue streams.