So far, Globe has closed two sale and leaseback agreements for 5,799 telecom towers worth P71 billion, and is in talks to sell 1,350 other towers
MANILA, Philippines – Globe is set to sell over 7,000 tower assets in what would be considered as the largest ever sale and leaseback transaction in the Philippines.
On Friday, August 12, the Ayala-led telecommunications company said that so far, it has closed two sale and leaseback agreements for two portfolios consisting of 5,799 telecom towers and infrastructure for over P71 billion. It is also in advanced talks with another company for the sale of 1,350 telecom towers.
Globe’s sale of more than 7,000 towers would be bigger than earlier transactions by its rival PLDT. The Pangilinan-led telco earlier sold 5,907 telecom towers for P77 billion.
Globe said 2,180 telecom towers in Luzon will be acquired by MIESCOR Infrastructure Development Corporation, a unit of Pangilinan-led Manila Electric Company, for P26 billion and will be leased back to Globe for 15 years.
Meanwhile, 3,529 towers will be sold to Frontier Tower Associates Philippines for P45 billion, and also leased back for an initial period of 15 years.
The advanced talks with another company, meanwhile, involve 1,350 telecom towers in the Visayas and Mindanao.
Proceeds of the telco tower sale would be used to fund Globe’s network expansion and to pay off some debt.
In a briefing, Globe said it will retain around 5,000 towers that are considered “most strategic” for the company.
Globe president and chief executive officer Ernest Cu said these monetization efforts would “further improve overall operational efficiency” and allow the company to serve customers better.
Globe and PLDT have been selling and leasing back their towers due to the common tower policy, where telcos will only have to lease towers instead of building their own. – Rappler.com
