Header Ads

PLDT sells nearly 6,000 towers for PHP 77 billion

Dominant local player PLDT announced Tuesday it will sell a total of 5,907 telco towers and related passive telecom infrastructure to foreign tower companies (towercos).
File photo: PLDT logo

Smart to lease back to sold towers for 10 years

In a statement, the group said its subsidiaries Smart Communications and Digitel Mobile Philippines sealed sale and purchase agreements, with the transaction priced at PHP 77 billion.

The winning bidders are edotco Group and EdgePoint, PLDT said. Once the transaction is completed, these groups will become "the largest common tower operators in the country".

According to PLDT, edotco Group manages over 54,000 towers across nine countries in Asia, while EdgePoint owns approximately 10,000 towers across Indonesia and Malaysia.

This partnership with experienced international tower companies represents another milestone in PLDT’s strategic transformation. We expect to reap benefits in terms of a valuation uplift and capital reallocation with PLDT applying the proceeds to deleverage, further invest in the network, and return cash to shareholders via a special dividend, PLDT Chairman Manuel V. Pangilinan said.

The agreement with these two towercos also entails that Smart would lease back the towers sold in the transaction for a period of 10 years.

The towercos would also be responsible for providing operations and maintenance services as well as the power to the sites. They are also committed to fire up 1,5000 new towers "over the next few years".

Source: PSE
Powered by Blogger.