Know more of the business decisions enacted by Globe with the interest of stakeholders and investors in mind through the years.
Stock Profile History
Dividend Policy History
On August 11, Globe Telecom, Inc. or Globe, then named Globe Mackay Cable and Radio Corporation (GMCR), listed its shares in the Philippine Stock Exchange (PSE). It became the first telecommunications company in the Philippines to do so.
The Class A and Class B common shares were declassified into a single class of common shares; With reverse stock split, the par value of common shares changed from P1 per share to P50 per share.
A new class of preferred shares was created. Moreover, there was an increase of authorized capital stock from P5 billion consisting of 100 million single class of common shares at par value of P50 per share to P11.25 billion consisting of 200 million common shares at par value of P50 per share and 250 million preferred shares at par value of P5 per share.
A share swap transaction to acquire Isla Communications Co., Inc. (Islacom) was also entered. There was an issuance of 158,515,021 preferred shares of Globe at par value of P5 per share to Asiacom Philippines, Inc. (Asiacom) in exchange for 1.08 billion common shares of Islacom, and issuance of 28,830,860 common shares of Globe at par value of P50 per share to DeTeAsia Holding GmbH (DeTeAsia), a wholly-owned subsidiary of Deutsche Telekom AG, in exchange for 720 million of Islacom common shares.
In July, Globe Telecom Holdings, Inc. (GTHI), a special purpose vehicle 32.67% owned each by Globe and Ayala Corporation (AC) and 33% by Singapore Telecommunications Limited (Singtel), filed with the Philippine Securities and Exchange Commission (SEC) a registration statement for the offering of up to 12 million Philippine Depositary Receipts (PDRs). The PDRs were backed by Globe's common shares as underlying security.
In September, the PSE approved Globe’s application to list an additional 12 million common shares (post declassification and post reverse stock split) as underlying shares for the PDRs to be issued by GTHI and the application to list up to 29,623,662 PDRs.
In March, the Board of Directors (Board) approved the issuance of new 16 million common shares in one or more offerings (other than rights issues) or private placements.
In May, AC, Singtel, and DeTeAsia pledged equity infusion of USD155 million to Islacom with the equity funding provided to Globe as a pass-through equity for Globe to invest in Islacom to fund the latter's capital and operating requirements. The USD155 million was recorded as Deposits on Subscriptions, which were applied to the conversion of 10,273,534 warrants and the balance to the subscription of an additional 8,855,476 common shares issued to AC, Singtel, and DeTeAsia.
Globe declared a 25% stock dividend to all common stockholders of record as of April 30, 2002. PDR holders who exercised their PDRs on or after the ex-date April 25, 2002 (3 working days prior the record date) were also entitled to receive the stock dividend in the proportion of one and one-quarter (1.25) common shares for every one (1) PDR.
By December, a total of 12,360,892 PDRs have been exercised. In the same month, GTHI, having completed and concluded its only business activity, filed with the SEC a request for the revocation of it permit to sell PDRs.
In October, DeTeAsia sold its 24.8% equity ownership in Globe to AC (10.04 million common shares), Singtel (15.64 million common shares), and Globe (12 million common shares).
On February 1, the Board approved an offer to purchase one share for every fifteen shares (1:15) of the outstanding common stock of Globe from all stockholders of record as of February 10, 2005 at P950 per share. The approval allowed Globe to purchase up to 9,326,924 shares representing 6.67% of Globe’s outstanding common shares. Each shareholder is entitled to tender a proportionate number of shares at the 1:15 ratio for purchase by Globe upon and subject to the terms and conditions of the tender offer. Globe also filed with the SEC the tender offer report with a copy of the letter to the shareholders, the terms and conditions of the tender offer, and the tender form. Globe commenced the tender offer on February 3 and ended on March 3.
On March 15, Globe acquired 8,064,094 shares at a total cost of P7,675.66 million, including incidental costs.
On April 4, Globe’s stockholders approved the cancellation of the 20.06 million treasury shares consisting of the 12 million shares acquired from DeTeAsia in 2003 and the 8.06 million shares acquired during the share buyback, and Globe’s amendments of the Articles of Incorporation to reduce accordingly the authorized capital stock of the corporation from P11,250 million to P10,246.72 million. On April 29, Globe applied for the retirement and cancellation of the existing treasury shares with the SEC, which the latter approved on October 28. Accordingly, Globe cancelled the existing treasury shares at cost. The difference between the par value and cost of treasury shares was charged to "Additional paid in capital" and "Retained earnings" accounts amounting to P5,179.35 million and P9,685.80 million, respectively.
On June 27, AC announced the sale to Singtel of 3.8 million common shares of Globe at P1,210 per share.
On August 8, Globe received the approval of the SEC to offer non-voting perpetual preferred shares with the aggregate issue size of P7 billion with an oversubscription option up to P3 billion. The offering was fully subscribed as of August 15 and the Preferred Shares was listed in the PSE (with ticker symbol of GLOPP) on August 22 for the full amount of P10 billion.
On November 6, the Board of Directors (Board) amended the dividend payment rate from 75% to a range of 75% to 90% of the prior year's net income.
On November 8, the Board amended Globe's dividend policy to be based on core instead of reported net income. The pay-out range remained at 75% to 90%. This is to ensure that dividends will remain sustainable and yields competitive despite the expected near-term decline in net income that would result from the accelerated depreciation charges related to assets that will be decommissioned as part of the company's network and Information Technology transformation programs. As currently defined, core net income excludes all foreign exchange, mark-to-market gains and losses, as well as non-recurring items.
On August 6, the Board approved the proposed change in the frequency of the cash dividend distribution from semi-annual to quarterly beginning in the first quarter of 2014. The quarterly cash dividends will continue to be based on the policy of 75% to 90% of the prior year's core net income. The amended frequency in the payouts will provide better cash planning and liquidity management and at the same time ensure a more consistent dividend distribution to the shareholders.
On December 10, Globe announced that the quarterly cash dividend distribution will be implemented beginning in the third quarter of 2014 instead of the first quarter of 2014.
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