MANILA, Philippines - Fitch says Globe's takeover of Bayan Telecommunications is credit positive, meaning the acquisition will help Globe pay debt which would make it cheaper for the company to borrow.
Fitch says the acquisition would add bandwidth, improve service and allow more growth in bandwidth-hungry mobile Internet.
Acquisitions are often negative because the buyer adds to its debt to make the purchase.
Globe bought most of Bayantel's debt and is now converting that into a 57% stake.
Earlier this year, Globe and ABS-CBN announced the broadcast giant is buying bandwidth from Globe to start its own mobile phone service. - ANC