Telecoms

Rumor: SM’s Henry Sy buying Globe Telecom?

Abe Olandres May 27, 2012 · 2 min read

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We got this really surprising tip from a source that rumor is going around that billionaire tycoon Henry Sy is looking to buy controlling shares of Globe Telecom.

Henry Sy has interestes in a lot of markets — retail, real estate, banking, leisure, etc. This rumored interest in the telecoms industry could have been sparked by the recent acquisition of Digitel by PLDT, putting the competition between Smart and Globe in a spotlight.

Earlier, Globe has secured a $90 million loan from China Banking Corp. to spend for the expansion of its 4G network in the Philippines. China Bank is also owned by Henry Sy.

Globe has a market capitalization of around Php142 billion and recently achieved a 1st quarter revenue of Php20.2 billion (Q1, 2012). The company is partly owned by the Ayalas with 32% share while Singaporean telecom, Singtel, owns 47%.

Henry Sy is the Philippine’s richest guy (#173 in the world) with an estimated worth of $8 billion or Php344 billion. That’s more than enough money to buy controlling shares of Globe.

Henry Sy doesn’t need to buy it out of the Ayala clan. He can just buy the majority shares from Singtel to take control of the telco.

Again, it’s just a rumor (so take this story with a grain of salt) but if this actually happens, Henry Sy might do to Globe what it did to Banco de Oro — propelling the company to the top spot by leveraging on its assets and interests in other markets.

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Abe Olandres

Editor-in-chief

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

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65 Comments

Aruba · 14 years ago

I doubt it.

Globe is very profitable to be sold. In addition, if ever Singtel decides to sell their share, they will offer it to the Ayala’s before selling it to the outsiders.

Another fact is that on top of the 32% of the Ayalas, an investment company which has a 17% stake at Globe is an Ayala controlled company.

MDM782010 · 14 years ago

Im using prepaid globe less than a decade now..and to merge to a giant one is a giant leap for Globe.

showbiz · 14 years ago

If this will come true, smart will have no space in SM Malls. And all SM Malls will be wified courtesy of globe telecom.

roiji · 14 years ago

alam ko pagmamay-ari ng mga Ayala ang Globe eh.. hmmmm

Hotels Donegal · 14 years ago

Hi Yuga, really an important news for those associated with the telecom sector. The Retail King ‘Henry Sy’ is already going with number of sectors. The IT sector is also a great industry if the profits are considered.

Eizan · 14 years ago

I’m not too sure if this deal is going to happen. Ok, so let’s just say the Ayalas will not sell their stakes in Globe, SM can always turn on to Singtel (which is the majority stakeholder in Globe) to buy their shares. Question is, will Singtell give in? They have been investing in Globe for quite a while. Unless Singtel sees a significant decline in profits, I don’t think Singtel will sell their shares. Of course, this is all dependent on the price they’re talking about. Besides, I don’t think Ayala will sell their shares at all. It’s too profitable to just let go.

Any which way, it’s good that MVP will get some real competition. His HK-based, and Indonesian-crony funded First Pacific is slowly creeping its way on controlling every public utility in the country. Baka next time, magising na lang tayo na the Indonesian cronies that fund First Pacific already controls our information, etc. haha!

chinitoguy · 14 years ago

While I was reading this article, I was shocked by the idea of SM buying shares in Globe. This is kinda peculiar – Ayala and SM are competing in real estate and mall management (Ayala Malls vs SM Malls and Ayala Land vs SMDC). In fact both filed cases against bidding of a certain property in Visyas.

If this is true – this is going to be good! Big guys are now controlling the telco industry – Manny Pangilinan’s PLDT vs SM/Ayala’s GLOBE vs Danding Cojuanco’s San Miguel Controlled – Wi-Tribe, BellTel, and Eastern Telecom! Oh yeah! What an epic battle for supremacy!

I agree with one comment here – if there is Smart Araneta Coliseum, there will be Globe Mall of Asia Arena! Hahaha!

As a Globe subscriber for so many years, a new investor like SM Group is a big welcome because many subscribers are pissed right now at Globe. Many have switched to Sun and Smart already because of their slow internet connection and poor call and voice service. Proof? Go to Globe’s twitter account @talk2globe.

But I doubt this, I don’t think Ayala Corporation would allow this to happen.

dTech · 14 years ago

Boss will not sell his Telco, it’s a biggie to him. Hehe!

diet · 14 years ago

if there is Smart Araneta Coliseum..

then there will be Globe MOA Arena..

Yahya · 14 years ago

As long as they’ll remain the same ‘ol globe, it’s okay ! I dunno what is wrong with my connection… I’m subscribed at their WiMAX 1 Mbps plan (999/mo) which has a 25 GB cap, but look what I’m getting ;)

http://www.speedtest.net/result/1974879657.png

Now at 37.86 GB of data usage.

jayb · 14 years ago

that’s good news for globe. exclusively installing indoor cellsites inside malls will benefit globe.

Yahya · 14 years ago

They don’t have to ! I get very strong 3G signals on every mall here in Bacolod City… Compared to smart :L

john · 14 years ago

well at least globe wouldn’t be much of a foreign owned company n the country yea?

Lurker · 14 years ago

i wont be surprised if sy will bring ang (smc) with him in this venture. they almost had meralco when they made doubled mvp’s offer to lopez. just imagine powerhouse local companies (smc,ayala and sm) against hk-based, indo-crony first pacific.

cy · 14 years ago

much better if sm and smc would have a joint venture to compete for smart and globe…

Kabayan · 14 years ago

Expect to hear the phrase “HAPPY TO SERVE!!” when visiting a Globe Office!! :)

Eric · 14 years ago

And BONUS brand SIM cards.

Yahya · 14 years ago

It just keeps getting better and better !!

Iyan Sommerset · 14 years ago

I for one, welcome our new insect overlords.

toinks · 14 years ago

haha at least SM and Ayala Malls will be exclusive to Globe subscribers only…

William C · 14 years ago

I don’t think the $90 million from Chinabank has anything to do with it. $90 Million is just a tiny slice of what Globe or other telco borrow from banks.

But Mr. Sy might buy a stake, though I don’t believe it will be controlling one. Just as Mr. Sy bought SMC stake before, it is a business decision. After all, he has much spare cash on hand. Although, it should be enough to get a seat on the board. Mr. Sy evenrtually sold those SMC shares for a profit. He might do the same with Globe.

geust · 14 years ago

Tha fact that they secured a loan through Chinabank on which is a bank that is technically already owned & managed by the SY’s (RUMOR BDO WANTS TO MERGE WITH BDO), I wouldn’t be surprised if this were true

geust · 14 years ago

RUMOR BDO WANTS TO MERGE WITH CBC I MEAN

Guest · 14 years ago

Papayag kaya ang SingTel? Significant din ang investments nila sa Globe right from the start.
The price of the buy out will determine the outcome, though. :D

MakaPUNohhh · 14 years ago

Ipa WIFI ang buong Pilipinas.. ay hindi..
Ipa WIFI at Ipa Aircon ang buong Pilipinas!
Sa SM at Globe!?.. Possibleh!!

miongb · 14 years ago

He should have bought sun cel before, to force a three-way fierce competition in the telecom industry. Control of smart and sun by pldt is not good for the consumers.

If the purchase of globe pushes through, then it’s one business where henry sy is not number 1. I don’t think globe will surpass smart-sun in the near future, be it managed by ayala or sy.

showbiz · 14 years ago

If Henry Sy will buy out controlling shares of globe, there will be possibility that it will surpass subscribers of sun and smart in the long run. I don’t know if this can be done but SM can remove all the sun and smart stores in their malls.