Globe raises P91 billion from sale of towers

MANILA, Philippines — Globe Telecom Inc. has raised P91 billion from the sale of its telco towers as the company completes the disposal of its third and final batch of passive assets.

Globe sold the final portfolio of tower assets made up of 1,350 units for P20 billion to PhilTower Consortium Inc.

Prior to this, Globe in August signed two sale and leaseback deals for two portfolios composed of 5,709 towers for P71 billion to Manila Electric Co.’s subsidiary Miescor Infrastructure Corp. (MIDC) and infrastructure operator Frontier Tower Associates Philippines Inc.

In a regulatory filing, Globe said it expects to make a post-tax gain of P5.2 billion from the transaction. The telco said the amount to be generated from the PhilTower agreement would be used to fund capital expenditures, purchase new equipment and improve its balance sheet.

Broken down, more than 90 percent of the assets disposed to PhilTower are located on ground, while the other 10 percent are situated on rooftops.

The towers, most of which are set up in Visayas and Mindanao, will be leased back to Globe for an initial period of 15 years.

Globe chief finance officer Rosemarie Maniego-Eala said the telco giant hopes to strengthen its capital efficiency and financial sustainability in the tower deal struck with PhilTower.

“Through this initiative, we ensure our balance sheet health that allows us to properly complete and fortify our market leading position,” Eala said.

Ivan Varughese, senior managing director and head of infrastructure and energy capital for Asia and the Pacific at Macquarie Capital, said the agreement benefits PhilTower in its bid to improve digital connectivity and market presence especially in local communities.

Globe said it completed the first closing with 800 of the 3,529 towers sold to Frontier Tower for P10 billion.

On the other hand, the portfolio acquired by MIDC is expected to be closed within the next few weeks.

“We’re happy we have attained the first closing for the biggest ever tower sale in the Philippines. This deal brings financial resources that will strengthen our balance sheet and provide sufficient flexibility to properly compete in this dynamic market,” Eala said.

After the sale of the tower assets, Globe will keep in its fold around 5,000 units that are strategic to its operations and expansion.

In April, PLDT Inc. signed agreements to sell nearly 6,000 passive infrastructure to two foreign tower operators for P77 billion.