Globe nets P40 billion from sale of towers

MANILA, Philippines — Ayala-led Globe Telecom Inc. has received P40.5 billion in proceeds from its tower sale after turning over multiple assets in Visayas and Mindanao to PhilTower Consortium Inc.

As of April, Globe has received 44.5 percent of the P91 billion that it expects to get from the sale of more than 7,000 towers to three local operators.

The last amount it received was P2 billion from PhilTower for the turnover of 132 towers situated in Visayas and Mindanao.

Globe said 94 percent of those towers are built on the ground, while the other six percent are installed on rooftops.

With the closing, the telco has completed the handover of 710 of the 1,350 towers it sold to PhilTower.

Under the deal, Globe agreed to sell its assets to PhilTower on the condition that it will raise 750 towers in Visayas and Mindanao to improve connectivity services there.

Globe plans to transfer the remainder of the units covered by the sale as soon as requirements are met.

Globe chief finance officer Rizza Maniego-Eala said proceeds from the tower sale will be used to build up the company’s balance sheet, especially as it bolsters its non-telco segments.

“As Globe shifts its focus on strengthening its free cash flow position, this initiative continues to provide additional financial and operational flexibility, thereby protecting market leadership and allowing adequate elbow room to venture into exciting digital businesses,” Eala said.

For his part, Globe president and CEO Ernest Cu said the partnership with PhilTower paves the way for Globe to attain its expansion targets in Visayas and Mindanao.

PhilTower president Devid Gubiani hopes that the remaining batch of towers would be turned over as soon as possible.

By releasing thousands of its assets, Gubiani said that Globe could free up expenses and focus spending on priority projects.

“In rapid succession from our initial February closing, PhilTower is pleased to transact another 132 sites with Globe. This brings our overall portfolio to over 1,000 sites nationwide, as we look forward to closing the remaining 640 sites,” Gubiani said.

Last year, Globe entered into a P91 billion contract for the sale and leaseback of 7,059 towers to PhilTower, Manila Electric Co.’s unit MIESCOR Infrastructure Corp. and tower builder Frontier Tower Associates Philippines Inc.

The company expects to maintain around 5,000 towers in its fold, all of which are deemed to be strategic to current operations and future expansions.