PLDT completes PHP 13.2-B tower sale

PLDT Inc. announced the completion of the sale of 1,013 telecom towers, receiving PHP 13.2 billion from the deal.

File photo of cell antennas

PLDT closes another tower deal

The telco giant disclosed to the Philippine Stock Exchange that the second closing of the PHP 77-billion transaction was achieved on Monday.

This event follows the first closing attained on June 1 covering 3,012 telecom towers with a consideration of PHP 39.2 billion having been paid to the group, PLDT said.

Of the 5,907 towers up for sale, the group has already disposed of 4,025 towers. The final closing is seen to be completed by the fourth quarter of 2022.

In April, PLDT said the towers would be sold to foreign companies edotco Group and EdgePoint.

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 earlier 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.

Source: BusinessWorld