Globe Telecom Inc. has signed its third tower deal with Phil-Tower Consortium Inc., bringing the overall proceeds from the sale of its towers to P91 billion, which is considered as the biggest tower sale in the country.
In a disclosure to the stock exchange, Globe said it has signed the third sale and leaseback deal with PhilTower for 1,350 towers located in Visayas and Mindanao for P20 billion.
The initial closing of the transaction is targeted by the end of 2022, with subsequent closings happening as and when conditions are met.
The over 1,300 towers will be leased back to Globe for an initial period of 15 years. Globe said it is estimated to incur P5.2 billion pre-tax transaction gain.
The sale to PhilTower brings Globe’s total towers sold to 7,059, from previously 5,709 towers, and the telco expects proceeds to total to P91 billion in view of the sale of three tower portfolios.
Globe said the proceeds will be used to finance its capital expenditures and maturing debts.
“This record-setting deal shows Globe’s commitment to capital efficiency and financial sustainability. Through this initiative, we ensure our balance sheet health, which allows us to properly complete and fortify our market leading position,” said Rosemarie Maniego-Eala, Globe chief finance officer.
This transaction will allow the company to efficiently raise capital, redeploy capital from passive infrastructure to active equipment, improve balance sheet health and leverage expertise of tower companies, the telco said.
In a separate disclosure, Globe said it has achieved its first closing for 800 towers out of the 3,529 towers to be acquired by Frontier Tower Associates Philippines Inc. for P10 billion.
The deal was accomplished after just over a month from the signing of the milestone sale and leaseback transactions for the first two tower portfolios last August, it added.
The portfolio sold to MIESCOR Infrastructure Development Corp. is expected to close within the next few weeks.
“This deal brings financial resources that will strengthen our balance sheet and provide sufficient flexibility to properly compete in this dynamic market,” Maniego-Eala said.
“ The official handover of this first batch of towers is an important step in our strategic partnership and journey towers delivering stronger connectivity and sustainable inclusive economic growth to the people of the Philippines,” said Patrick Tangney, Frontier Towers chairman and chief executive officer.
Upon Globe’s completion of the overall transaction, it will represent the Philippines’ largest ever tower sale and leaseback deal.
