Globe says 5,709 tower assets are for sale for around P71-B

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MANILA – Globe Telecom said on Tuesday that the price of the planned sale-leaseback agreement for its portfolio of 5,709 towers and associated passive infrastructure was estimated at 71 billion pesos.

Globe has signed agreements with MIESCOR Infrastructure Development Corp and Frontier Tower Associates Philippines Inc for the tower assets for approximately 71 billion pesos, it said in a statement to the stock exchange.

MIESCOR, a subsidiary of Meralco, will buy 2,180 towers for 26 billion pesos while Frontier Tower Associates Philippines Inc will buy 3,529 towers for 45 billion pesos, Globe said.

The portfolio of 2 assets is part of the 7,059 Globe towers for sale. Globe said it was still in discussions for the buyer of the third portfolio of assets.

“The transaction will result in the availability of funds from Globe to support future capital expenditures, debt repayments and debt avoidance in hopes of improving the health of the company’s balance sheet,” said he declared.

There will be multiple closing dates that will occur when the conditions are met, the company said. The first closing is expected in the third quarter of 2022, he added.

The telephone company announced earlier that it will sell more than 7,000 ground and rooftop towers to 3 joint tower companies.

Upon completion and if the total sale price exceeds PLDT Inc’s sale and leaseback agreement worth 77 billion pesos, the sale of Globe tower assets comprising a total of 7,059 towers could be the largest such transaction in the country.

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