Globe announce yesterday that it sold 1,300 of its towers to Philtower and will leaseback these towers. The total costs of the sale is P20 Billion which brings its tower sale proceeds to P91 Billion.
The tower assets up for sale consist of 90% ground-based towers and 10% rooftop towers
On its latest disclosure Globe stated that the towers, which are located primarily in Visayas and Mindanao, will be leased back to Globe 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 estimates the pre-tax transaction gain from this transaction to be ₱5.2 billion, reporting and recognition of which will be according to the timing of the transaction closings.
The deal will be the largest tower sale and leaseback ever in the Philippines once Globe has completed the entire transaction. In light of the sale of three tower portfolios, Globe’s total number of sold towers has increased from 5,709 to 7,059, and estimated total profits have reached 91 billion. These proceeds will be utilised to pay for capital expenditures and maturing debts.
“We believe that our partnership with Philtower, which has a proven track record and expertise in telecom tower infrastructure, shows Globe’s commitment to ensuring the improvement in the Philippines’ internet condition and the success of the country’s digital transformation. Also, these monetization efforts will provide an uplift to Globe’s overall value, supporting our goal of enabling the digital lives of Filipinos,” said Ernest Cu, Globe President and Chief Executive Officer.
Ivan Varughese, Senior Managing Director and Head of Infrastructure and Energy Capital, Asia Pacific, Macquarie Capital said: “Today’s transaction enables PhilTower to enhance digital connectivity and expand its reach into local communities that could benefit from better mobile network access, a key economic driver for the country. We are pleased to be able to continue supporting PhilTower to become one of the leading tower companies in providing critical digital infrastructure in the Philippines.”
Share prices of GLOBE stayed at 2,178 pesos per share bucking the sell off trend of Philippine Stocks.
