Globe seals deals for PHP 71-billion tower sale

Globe Telecom announced Friday it inked deals with two companies for the sale of over 5,000 towers.

Globe Telecom

Globe selling tower assets

In a disclosure to the Philippine Stock Exchange, the company said it signed the sale and leaseback deals with MIESCOR Infrastructure Development Corporation (MIDC) and Frontier Tower Associates Philippines Inc.

Globe said MIDC would acquire 2,180 telecom towers in Luzon for a total consideration of PHP 26 billion. Frontier Tower, meanwhile, will get 3,529 towers for PHP 45 billion.

The telco giant said it would lease back the towers for an initial period of 15 years.

These expanded long-term partnerships with the tower companies show Globe's commitment to help improve the Philippines' internet condition, as well as our desire to have as many Filipinos enjoy the benefits of having access to reliable internet. We also believe that through these monetization efforts, Globe will be able to further improve overall operational efficiency, allowing us to serve our customers better, and supporting our goal of enabling the digital lives of Filipinos, said Ernest Cu, Globe president and chief executive officer.

The group said it 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.

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