Telco signs deals to sell towers for P71B

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Globe Telecom Inc. is set to sell over 7,000 towers to three tower companies, proceeds of which will be used to finance its capital expenditures and maturing debts.

Last week, Globe signed two sale and leaseback agreements for two portfolios consisting of 5,709 telecom towers and related passive telecom infrastructures for over P71 billion.The first portfolio consist of 2,180 towers which will be sold to MIESCOR Infrastructure Development Corp. (MIDC), a joint venture between Manila Electric Co. (Meralco) subsidiary MIESCOR and leading global infrastructure investor Stonepeak, for P26 billion.

The second portfolio consists of 3,529 towers which will be sold to Frontier Tower Associates Philippines a unit of KKR-backed Pinancle Towers for P45 billion.

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The first closing for the two portfolios is targeted within the quarter.

Carlo Puno, Globe vice president for planning and analysis, said 75 percent of the proceeds will be spent on capital expenditures and 35 percent for payment of debt maturing in 2023.

For the third portfolio, Globe is also in advanced discussion with one other tower company for the potential sale and leaseback of an additional 1,350 towers and related passive telecom infrastructure located in Visayas and Mindanao.

Globe expects to sign the sale and leaseback agreement with this tower company also within the quarter with first closing happening within the fourth quarter.

Globe did not disclose the total cost of the the third portfolio but Puno said the cost pricing and terms will likely be similar to the two deals.

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