Globe to sell over 5,000 towers for ₱71B

enablePagination: false
maxItemsPerPage: 10
maxPaginationLinks: 10

Metro Manila (CNN Philippines, August 12) — Ayala-led Globe Telecom said Friday it will sell more than 5,000 towers for ₱71 billion to raise capital for expansion.

Globe followed suit its main competitor's tower disposal as it announcing that it sealed deals with MIESCOR Infrastructure Development Corporation (MIDC) and Frontier Tower Associates Philippines Inc. for the sale of 5,709 towers.

MIDC, a joint venture between Meralco subsdidiary MIESCOR and real asset investment firm Stonepeak, will get 2,180 towers located in Luzon for ₱26 billion.

Frontier Tower, meanwhile, will shell out ₱45 billion for the acquisition of 3,529 towers.

Globe said the agreements involve that it would lease back the towers for an initial period of 15 years. Its pre-tax transaction gain from both deals is expected to reach about ₱25.6 billion.

The first closing target for the two deals is eyed to happen this quarter.

"These expanded long-term partnerships with the tower companies show Globe's commitment to help improve the Philippines' internet condition, as well as our desire to have as many Filipinos enjoy the benefits of having access to reliable internet," Ernest Cu, Globe president and chief executive officer, was quoted as saying in a disclosure.

"We also believe that through these monetization efforts, Globe will be able to further improve overall operational efficiency, allowing us to serve our customers better, and supporting our goal of enabling the digital lives of Filipinos," he said.

Globe said it is also in "advanced discussion" with another investor for similar transaction, involving additional 1,350 towers and related passive telecom infrastructure located in the Visayas and Mindanao. They hope to sign the agreement within the third quarter.

In a separate disclosure, Globe said its profit in the first half hit ₱19.7 billion, a 51% increase from the ₱13 billion booked a year earlier.

The group's consolidated service revenue also rose 4% to ₱78.9 billion, still driven by its data-related products and services.