[Security] Globe Plans $790 Million Investment to Boost Network, Technology

Nov. 8 (Bloomberg) -- Globe Telecom Inc. plans to invest about $700 million to modernize its network in the next five years and $90 million to improve technology systems as it aims to cut operating costs and reduce capital spending.

The company’s dividend payout starting 2012 will be 75 percent to 90 percent of the prior year’s core net income instead of reported net income to exclude non-recurring charges related to the upgrade, it said in a statement filed to regulators. The network and technology systems improvement targeted for completion over two to three years are estimated to cut operating expenses by $180 million and trim capital spending by $210 million over a five-year period, Globe said.