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PLDT gets PHP 57.7 billion from tower sale

PLDT, one of the country's major telco players, raised PHP 57.7 billion after selling 4,435 towers to two international companies.
File photo: PLDT logo

PLDT nears completion of tower sale

The number of towers sold represents 75% of the 5,907 towers covered by the sale and leaseback transaction.

In April, PLDT said the towers would be sold to foreign companies edotco Group and EdgePoint. The telco giant also said it is set to gain PHP 77 billion from the deals.

PLDT expects to complete all closings by the first quarter of 2023.

The group reiterated that this move complements the government's push to expand the common tower market, which the Department of Information and Communications Technology sees as a vital effort to improve connectivity across 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 earlier said.

The agreement with these two tower companies also entails that Smart lease back the towers sold in the transaction for 10 years.

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