PLDT Inc. yesterday has received a total of P57.7 billion following the third closing of its landmark sale and leaseback tower deal.
This developed as Globe Telecom Inc. said the company and its partners are on track to complete the $150-million Philippine Domestic Submarine Cable Network (PDSCN), the longest domestic subsea cable project in the Philippines by April 2023.
In a statement, PLDT said it has achieved the third closing of the transaction as part of the sale and leaseback tower deal with the subsidiary of EdgePoint and a subsidiary of edotco for the sale of a total of 5,907 telecom towers and related passive telecom infrastructure for P77 billion last April.
As of October 3, ownership of a total of 4,435 towers or 75 percent of the
5,907 towers had been transferred to the tower companies, PLDT said.
“Proceeds from the sale of the towers would be used to pay down debt, and
support operating and capital expenditures,” PLDT added.
The transaction is timely as it allows PLDT to avoid additional debt against a backdrop of a rising interest rate environment.
PLDT said a portion of the towers sale proceeds amounting to P9 billion was earmarked as special dividends, of which P6 billion equivalent to P28 per share was paid out to shareholders on September 5, 2022.
PLDT expects additional closings before the end of the year, with final closing anticipated to be completed by the first quarter of 2023.
Meanwhile, Globe said the PDSCN has landed in Lucena City, Boac in Marinduque, Calatrava in Romblon, Placer in Masbate, Iloilo City, Bacolod City, Roxas City, and most recently, Siargao in Surigao del Norte.
“This is a historic subsea cable project that will bring better connectivity and data capacity to several communities who rely on communications for their day to day needs, including education, work, and livelihood,” said Ernest Cu Globe Group president and chief executive officer, in a statement.
The sites are among 33 landing points of PDSCN, which has a total cable distance of about 2,500 kilometers. The project commenced in July and is set to finish covering all sites by April next year.
The project is seen to deliver connectivity crucial to the country’s recovery from the pandemic, as it will support government, education, business, and even recreational needs for reliable communication facilities.
Further cable landings will be made in the coming months, including in Mactan, Cebu and Boracay, Aklan.
