Globe closes PHP 10-billion tower sale

Globe Telecom said it completed the first closing on 800 towers out of the 3,529 towers acquired by Frontier Tower Associates Philippines Inc.

File photo: Globe logo

Globe achieves first tower sale deal

The deal had a cash consideration of PHP 10 billion, the Ayala-led telco said in a statement.

The transaction was completed just over a month after both parties signed the sale and leaseback agreements in August.

Meanwhile, the portfolio sold to Miescor Infrastructure Development Corp. is seen to close "within the next few weeks," Globe said.

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

We are happy that we have attained the first closing for the biggest ever tower sale in the Philippines. This deal brings financial resources that will strengthen our balance sheet and provide sufficient flexibility to properly compete in this dynamic market, said Globe Chief Finance Officer, Rosemarie Maniego-Eala.

Globe President and Chief Executive Officer Ernest Cu said the deal with Frontier Towers will "lead to significant overall operational efficiencies and improvement in the country’s connectivity needs."

The group previously said it was 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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