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Globe sells 1,350 towers to PhilTower for P20 billion

GLOBE Telecom, Inc. announced on Tuesday that it recently signed a sale and leaseback deal with Phil-Tower Consortium, Inc. (PhilTower) for the telco’s 1,350 towers.

“Globe expects to raise total proceeds of P20 billion from executing this transaction,” the company told the stock exchange.

The tower assets, which are located primarily in Visayas and Mindanao, consist of 90% ground-based towers and 10% rooftop towers. The towers will be leased back to the telco for an initial period of 15 years.

“The first close for this portfolio is targeted to occur by the end of 2022, with subsequent closings happening as and when closing conditions are met,” Globe said.

The company estimates a pre-tax transaction gain of P5.2 billion.

The sale to PhilTower brings the Ayala-led telco’s total tower sold from 5,709 towers to 7,059, with expected total proceeds of P91 billion.

This will be used to finance capital expenditures and maturing debts, according to the company.

Ernest L. Cu, Globe president and chief executive officer,  said these monetization efforts is expected to provide an uplift to the company’s overall value.

For PhilTower, its expansion into Visayas and Mindanao through Globe towers “will give the company a truly nationwide reach.”

“We look forward to growing a long-term partnership with all mobile network operators to bring efficiency, cost savings and faster expansion, and further bridge the nation’s digital divide,” said Devid Gubiani, president of PhilTower.

On Sept. 23, Globe announced that had achieved the first closing with 800 towers out of the 3,529 towers to be acquired by Frontier Tower Associates Philippines, Inc. for a cash consideration of P10 billion.

“The portfolio sold to MIESCOR Infrastructure Development Corp. (consists of 2,180 telecom towers in Luzon) on Aug. 11 of this year is expected to close within the next few weeks,” the company said in a statement.

Globe shares closed 0.18% higher at P2,178 apiece on Tuesday. — Arjay L. Balinbin

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